Question
True or False ? 1) A reduction in payment terms from a supplier will increase the customers CCC. 2) Purchasing larger quantities of inventory to
True or False?
1) A reduction in payment terms from a supplier will increase the customers CCC. 2) Purchasing larger quantities of inventory to obtain volume discounts will increase the CCC. 3) Dividends to shareholders will decrease the firms debt/equity ratio. 4) An increase in the payment terms to customers will decrease the CCC. 5) Reducing the cash conversion cycle will improve a firms cash flow. 6) A reduction in a firms days sales outstanding (DSO) will improve a firms cash flow. 7) The credit score of your customer is more important than your credit score. 8) According to the article on Vanguard and ETFs, the turnover on Vanguards index funds is higher than the turnover on actively managed mutual funds. 9) The owner of an LLC is liable for the debts of the business. 10) The budget process starts with the sales forecast because sales volumes determine the production plan. 11) A decline in the inventory turnover ratio suggests that the firm's liquidity position is improving. 12) Real Estate taxes are a type of fixed expense. 13) An increase in fixed expenses will result in a decrease in the breakeven point. 14) An increase in the selling price will result in a decrease in the breakeven point. 15) A firm with many good investment opportunities will usually have a low dividend payout ratio. 16) If you have more dependents, you will pay less federal income taxes. 17) If you have more dependents, you will pay less payroll taxes (FICA and Medicare).
18) Switching from cash sales to consignment sales will increase the CCC for the supplier (producer)
19) The main reason that a supplier would use consignment sales is to sell more.
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