When factoring accounts receivable, the factor is the Group of answer choices Negotiated accounts receivable account Method of determining how much money is lent to the firm Financial institution that buys the accounts receivable Percent deduction in payment to the firm It is the average length of time required to convert a firm's receivables into cash Group of answer choices Receivables collection period Payables deferred period Cash conversion cycle Days sales outstanding Which of the following statement is true Group of answer choices If a firm that sells on termsof net 30 changes its policy to 2 10, net 30, and if no change in sales volume occurs, then the firm's DSO will probably increase Other things held constant, the higher a firm's days sales outstanding (DSO), the better its credit department If a firm sells on terms of net 60 and its sales are highly seasonal, with a sharp peak in December, then its DSO as it typically calculated ( with sales per day sales for past 12 months 365) would probably be lower in January than in July If a firm sells on terms of 2 10, net 30 and its DSO is 30 days, then the firm probably has some past due accounts A Company's accounts receivable total Php25,000 and the turnover rate is 15 times in one year A turnover rate of 10 times in one year is desired to increase by 20 How much must be the increase or decrease in the accounts receivable Group of answer choices Php45,000 decrease Answer not given Php25,000 increase PHp45,000 increase A firm's sales amount to Php1,200,000 Sales terms are being revisedfrom n 60 to n 45 and sales are expected to decrease by 15 How much is the increase (or decrease) in receivables as a result of this change Group of answer choices Php50,000 Answer not given Php(72,500) Php(52,500) The following bits of information are available from the financial records of Camil's Corporation for 2019 Sales, Php750,000 Net credit sales, 66 67 Net cash sales, 33 33 Accounts receivable, Jan 1, 2019, Php75,000 Accounts receivable, Dec 31, 2019, Php50,000 What was the accounts receivable turnover in 2019 Group of answer choices 15x Answer not given 10x 12x To improve the credit and collection policies of Pau Company, the following data for 2019 were gathered for study Accounts receivable, Jan 1, Php112,000 Accounts receivable, Dec 31, Php140,000 Bad debt expense, Php 6,300 Allowance for uncollectible accounts, Jan 1, Php10,500 Allowance for uncollectible accounts, Dec 31, Php7,000 Sales (all sales were made on credit), Php630,000 How much was the total cash collected from customersduring 2019 Group of answer choices Answer not given Php598,500 Php592,200 Php599,200 To improve the credit and collection policies of Pau Company, the following data for 2019 were gathered for study Accounts receivable, Jan 1, Php112,000 Accounts receivable, Dec 31, Php140,000 Bad debt expense, Php 6,300 Allowance for uncollectible accounts, Jan 1, Php10,500 Allowance for uncollectible accounts, Dec 31, Php7,000 Sales (all sales were made on credit), Php630,000 What was the accounts receivable turnover Group of answer choices 4 70x Answer not given 5 00x 5 37x Pau Company has an average payment period of 30 days, an average age of inventory of 20 days, and a cash conversion cycle is 30 days What is Pau Company's average collection period Group of answer choices 80 days 20 days Answer not given 40 days For the company of Ms G, the average age of accounts receivable is 30 days, the average age of accounts payable is 50 days, and the average age of inventory is 40 days If Ms G's annual sales are Php900,000, what is the firm's average accounts receivable balance Assume a 360 day year Group of answer choices Php75,000 Php62,500 Php125,000 Php100,000 Cut Works expects sales of Php20 million this year under its current credit policy The present terms are net 30, the days sales outstanding is 60 days, and the bad debt loss percentage is 5 Since Cut Works wantsto improve its probability, the treasurer has proposed that the credit period be shortened to 15 days This changewill reduceexpected sales by Php1,500,000, but will also shorten the DSO on the remaining sales to 30 days Expected bad debtslosses on the remaining, sales will fall to 3 The variable cost percentage is 60 , and the cost of capital is 15 What is the increase or decrease in bad debts losses if the change is made Group of answer choices Php445,000 increase Php555,000 decrease Pgp445,000 decrease Php555,000 increase Data on Shick Inc for 2019 are shown below, along with the days sales outstanding of the benchmark firms The firm's new CFO believes that the company can reduce its receivables enough to reduce its DSO to the benchmark's average If Schick Inc decides to do it, by how much will the receivables increase or decrease Assume a 360 day year, Sales, Php120,000 Accounts receivable, Php15,000 Day sales outstanding (DSO), 60 days Benchmark's days sales outstanding (DSO), 30 days Group of answer choices Php10,000 Php(10,000) Php6,000 Php (6,000) Pua Company buys on terms of 2 10, net 30 It does not take discounts, and it typically pays 60 days after the invoice date Net purchases amount to Php500,000 per year What is the nominal annual percentage cost of its non free trade credit based on a 360 day year Group of answer choices 24 00 24 38 36 00 36 73

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When factoring accounts receivable, the factor is the___________. Group of answer choices Negotiated accounts receivable account. Method of determining how much money is lent to

When factoring accounts receivable, the factor is the___________.

Group of answer choices

Negotiated accounts receivable account.

Method of determining how much money is lent to the firm.

Financial institution that buys the accounts receivable

Percent deduction in payment to the firm

It is the average length of time required to convert a firm's receivables into cash.

Group of answer choices

Receivables collection period

Payables deferred period

Cash conversion cycle

Days sales outstanding

Which of the following statement is true?

Group of answer choices

If a firm that sells on termsof net/30 changes its policy to 2/10, net/30, and if no change in sales volume occurs, then the firm's DSO will probably increase.

Other things held constant, the higher a firm's days sales outstanding (DSO), the better its credit department.

If a firm sells on terms of net/60 and its sales are highly seasonal, with a sharp peak in December, then its DSO as it typically calculated ( with sales per day = sales for past 12 months/365) would probably be lower in January than in July.

If a firm sells on terms of 2/10, net/30 and its DSO is 30-days, then the firm probably has some past due accounts

A Company's accounts receivable total Php25,000 and the turnover rate is 15 times in one year. A turnover rate of 10 times in one year is desired to increase by 20%. How much must be the increase or decrease in the accounts receivable?

Group of answer choices

Php45,000 decrease

Answer not given

Php25,000 increase

PHp45,000 increase

A firm's sales amount to Php1,200,000. Sales terms are being revisedfrom n/60 to n/45 and sales are expected to decrease by 15%. How much is the increase (or decrease) in receivables as a result of this change?

Group of answer choices

Php50,000

Answer not given.

Php(72,500)

Php(52,500)

The following bits of information are available from the financial records of Camil's Corporation for 2019.

Sales, Php750,000

Net credit sales, 66.67%

Net cash sales, 33.33%

Accounts receivable, Jan 1, 2019, Php75,000

Accounts receivable, Dec 31, 2019, Php50,000

What was the accounts receivable turnover in 2019?

Group of answer choices

15x

Answer not given.

10x

12x

To improve the credit and collection policies of Pau Company, the following data for 2019 were gathered for study:

Accounts receivable, Jan 1, Php112,000

Accounts receivable, Dec 31, Php140,000

Bad debt expense, Php 6,300

Allowance for uncollectible accounts, Jan 1, Php10,500

Allowance for uncollectible accounts, Dec 31, Php7,000

Sales (all sales were made on credit), Php630,000

How much was the total cash collected from customersduring 2019?

Group of answer choices

Answer not given.

Php598,500

Php592,200

Php599,200

To improve the credit and collection policies of Pau Company, the following data for 2019 were gathered for study:

Accounts receivable, Jan 1, Php112,000

Accounts receivable, Dec 31, Php140,000

Bad debt expense, Php 6,300

Allowance for uncollectible accounts, Jan 1, Php10,500

Allowance for uncollectible accounts, Dec 31, Php7,000

Sales (all sales were made on credit), Php630,000

What was the accounts receivable turnover?

Group of answer choices

4.70x

Answer not given.

5.00x

5.37x

Pau Company has an average payment period of 30 days, an average age of inventory of 20 days, and a cash conversion cycle is 30 days. What is Pau Company's average collection period?

Group of answer choices

80 days

20 days

Answer not given

40 days

For the company of Ms. G, the average age of accounts receivable is 30 days, the average age of accounts payable is 50 days, and the average age of inventory is 40 days. If Ms. G's annual sales are Php900,000, what is the firm's average accounts receivable balance? Assume a 360-day year.

Group of answer choices

Php75,000

Php62,500

Php125,000

Php100,000

Cut Works expects sales of Php20 million this year under its current credit policy. The present terms are net/30, the days sales outstanding is 60 days, and the bad debt loss percentage is 5%. Since Cut Works wantsto improve its probability, the treasurer has proposed that the credit period be shortened to 15 days. This changewill reduceexpected sales by Php1,500,000, but will also shorten the DSO on the remaining sales to 30 days. Expected bad debtslosses on the remaining, sales will fall to 3%. The variable cost percentage is 60%, and the cost of capital is 15%. What is the increase or decrease in bad debts losses if the change is made?

Group of answer choices

Php445,000 increase

Php555,000 decrease

Pgp445,000 decrease

Php555,000 increase

Data on Shick Inc. for 2019 are shown below, along with the days sales outstanding of the benchmark firms. The firm's new CFO believes that the company can reduce its receivables enough to reduce its DSO to the benchmark's average. If Schick Inc. decides to do it, by how much will the receivables increase or decrease? Assume a 360-day year,

Sales, Php120,000

Accounts receivable, Php15,000

Day sales outstanding (DSO), 60 days

Benchmark's days sales outstanding (DSO), 30 days

Group of answer choices

Php10,000

Php(10,000)

Php6,000

Php (6,000)

Pua Company buys on terms of 2/10, net/30. It does not take discounts, and it typically pays 60 days after the invoice date. Net purchases amount to Php500,000 per year. What is the nominal annual percentage cost of its non-free trade credit based on a 360-day year?

Group of answer choices

24.00%

24.38%

36.00%

36.73%