Week7Finance Essay Example

1. (TCO 2) Select any actions that decrease the cash account. Select all that apply: (Points : 3) | Goods are sold on credit An interest payment on a notes payable is made The electric bill is paid Dividends are paid to shareholders | 2. (TCO 2) Which one of the following will decrease the operating cycle? (Points : 3) | increasing the days' sales in inventory decreasing the accounts payable period decreasing the cash cycle increasing the accounts receivable turnover rate decreasing the accounts payable turnover rate | 3. (TCO 2) Assume Green Leaf Nursery anticipated sales of $500 in the first quarter. Accounts receivable at the beginning of the year was $300. Assuming a collection period of 30 days, which is the approximate beginning balance for the second quarter? (Points : 3) | $550 $630 $250 $170 None of the above | 4. (TCO 2) Which of the following does not reduce collection float? (Points : 3) | deposit collections at least daily. make sure all checks it receives are properly dated and signed. utilize the benefits of the Check Clearing Act for the 21st Century. consolidate all lockboxes into one lockbox located near the home office. | 5. (TCO 2) Which of the following statements is false? Select all that apply: (Points : 3) | The optimal credit policy minimizes the total cost of granting credit. Firms should avoid offering credit at all cost. An increase in a firm's average collection period generally indicates that an increased number of customers are taking advantage of the cash discount. The costs of the credit application process and the costs expended in the collection process are carrying costs of granting credit. Character refers to the ability of a firm to meet its credit obligations out its operating cash flows. | 6. (TCO 2) You place an order for 100