The working capital financing policy that subjects the firm to the greatest risk of being unable to meet the firm's maturing obligations is the policy that finances * Fluctuating current assets with long-term debt. Permanent current assets with long-term debt. Permanent current assets with short-term debt. Fluctuating current assets with short-term debt.

The company employees authorized to issue official receipt will be * Collector Bookkeeper Cashier Manager

4. The revenue growth rate is a ratio that measures the expansion or contraction of the business. * TRUE FALSE

Compared to other firms in the industry, a company that maintains a conservative working capital policy will tend to have a * Greater percentage of short-term financing. Greater risk of needing to sell current assets to repay debt. Higher ratio of current assets to fixed assets. Higher total asset turnover.

The Sales Director of Can Can Co. suggests that certain credit terms be modified. He estimates the following effects: Sales will increase by at least 20%. Accounts receivable turnover will be reduced to 8 times from the present turnover of 10 times. Bad debts, now at 1% of sales will increase to 1.5%. Sales before the proposed changes is at P900,000. Variable cost ratio is 55% and desired rate of return is 20%. Fixed expenses amount to P150,000.Should the company allow the revision of its credit terms? * Yes, because income will increase by P68,850. Yes, because losses will be reduced by P78,800 No, because income will be reduced by P13,000. No, because losses will increase by P28,000.