Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, would likely result in:

Related MCQs

• In response to market expectations, the credit pence r j been increased from 45 days to 60 days. This would result in
• Annual credit sales Rs. 4,00,000; Average collection period 45 days (assume 360 days in a year). What is Average debtors?
• The credit policy of Spurling Products is "1.5/10, net 35." At present 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of invoice. What would receivables be if all customers took the cash discount?
• 80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?
• Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency?
• Relaxed or libral credit implies -credit to customers
• ________ are taken as an additional security for working capital credit by banks
• Kanji Company had sales last year of Rs. 265 million, including cash sales of Rs. 25 million. If its average collection period was 36 days, its ending accounts receivable balance is closest to . (Assume a 365-day year.)
• _________Policy refers to the procedure follow to collect accounts receivable after the expiry of the credit period
• Ninety-percent of X company's total sales of $600,000 is on credit. If its year-end receivables turnover is 5, the average collection period (based on a 365-day year) and the year-end receivables are, respectively: