61.
What is the primary source of short-term financing?
A
Long-term debt
B
Equity
C
Accounts payable
D
Bank loans
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What is the primary source of short-term financing?
Long-term debt
Equity
Accounts payable
Bank loans
What is a lockbox system?
A system that allows customers to mail payments to a post office box
A system that allows customers to pay bills online
A system that allows customers to pay bills by credit card
A system that allows customers to pay bills by debit card
What is float management?
The time between when a check is written and when it clears the bank
The time between when a customer pays an invoice and when the payment is received
The time between when a company orders inventory and when it is received
The time between when a company borrows money and when it must repay the loan
What is cash budgeting?
A forecast of a company's cash inflows and outflows
A method of managing bank accounts
A method of investing excess cash
A method of borrowing money
Which of the following is NOT a component of working capital?
Cash
Inventory
Accounts receivable
Long-term debt
Which of the following is a technique for managing cash?
Cash budgeting
Float management
Lockbox system
All of the above
What are collection efforts?
Actions taken to collect overdue accounts receivable
A method of assessing the creditworthiness of a customer
A method of determining the optimal credit terms
A method of preventing fraud
What is a credit policy?
A set of rules that govern the granting of credit to customers
A method of collecting overdue accounts receivable
A method of preventing fraud
A method of determining the optimal credit terms
What is credit scoring?
A method of assessing the creditworthiness of a customer
A method of determining the optimal credit terms
A method of collecting overdue accounts receivable
A method of preventing fraud
Which of the following is a technique for managing accounts receivable?
Credit scoring
Credit policy
Collection efforts
All of the above
What is ABC analysis?
A method of classifying inventory items based on their value and importance
A method of forecasting inventory demand
A method of determining the optimal order quantity
A method of managing inventory levels using technology
What is JIT inventory management?
A system that aims to minimize inventory levels by ordering and receiving goods only as needed
A system that uses a fixed order quantity
A system that uses a fixed order interval
A system that uses a safety stock
What is the EOQ?
The optimal order quantity that minimizes the total cost of inventory
The maximum amount of inventory that can be held in stock
The minimum amount of inventory that must be kept on hand
The average amount of inventory held in stock
Which of the following is a technique for managing inventory?
Economic order quantity (EOQ)
Just-in-time (JIT) inventory management
ABC analysis
All of the above
A shorter cash conversion cycle is generally considered to be
Better than a longer cash conversion cycle
Worse than a longer cash conversion cycle
The same as a longer cash conversion cycle
Not relevant to a company's financial performance
What is the least liquid asset?
Inventory
Accounts receivable
Cash
Property, plant, and equipment
What is working capital?
Current assets - Current liabilities
Total assets - Total liabilities
Fixed assets - Current liabilities
Current assets - Fixed assets