Answered: The goal of accounts receivable…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 11MC: Which of the following best represents a positive product of a lower number of days sales in...

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Question

Answer true or false for each question. Bold or highlight the correct answer.
Question 1
The goal of accounts receivable management is to maximize the business's credit sales.
 True
 False
Question 2
Accounts Receivable Insurance offered by Export Development Canada is a guarantee against non-payment by local customers.
 True
 False
Question 3
The goal of inventory management is to minimize ordering costs per period.
 True
 False
Question 4
The more predictable the demand, the lower the safety stock should be.
 True
 False
Question 5
The more certain the delivery times, the lower the safety stock should be.
 True
 False

Question 6
The optimal order size is inversely related to the unit holding cost and the order fee.
 True
 False
Question 7
Paying accounts payable increases net working capital.
 True
 False
Question 8
Short-term bank loans are a great way to finance the purchase of long-term capital assets.
 True
 False
Question 9
Market Added Value (VAM) can never be negative.
 True
 False
Question 10
All other things being equal, an increase in the beta coefficient of the company's ordinary stock results in a decrease in the VAE.
 True
 False

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The goal of accounts receivable management is to maximize the business's credit sales.  True  False