1 Select any actions that decrease the cash account. Select all that apply:

Goods are sold on credit An interest payment on a notes payable is made The electric bill is paid Dividends are paid to shareholders

Question 2. Which one of the following will increase the operating cycle?

increasing the accounts payable period decreasing the accounts payable turnover rate decreasing the cash cycle increasing the accounts receivable turnover rate increasing the inventory period

Question 3. Assume Green Leaf Nursery anticipated sales of $630 in the first quarter. Accounts receivable at the beginning of the year was $373. Assuming a collection period of 60 days, which is the approximate cash collection for the quarter

$420 $607 $590 $580 None of the above

Question 4. 4. Which of the following does not reduce collection float?

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 21^st Century. consolidate all lockboxes into one lockbox located near the home office.

Question 5. Which of the following statements is true? Select all that apply

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. Capacity refers to the ability of a firm to meet its credit obligations out its operating cash flows. The optimal credit policy is the policy that produces the largest amount of sales for a firm.

Question 6. You place an order for 100 units of inventory Part A at a unit price of $522. The supplier offers terms of 1/25, net 40. How much should you remit if you take the discount?

$52,200 $39,150 $51,678 None of the above

Question 7. Auto Parts sells 1,200 electric parts per week and then reorders another 1,200 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $750, what is the total carrying cost and the restocking cost, respectively?

$2,400 and $39,900 $3,200 and $33,800 $2,400 and $39,000 $3,400 and $30,000 None of the above

Question 8 Company ABC has expected sales of 12,000 units this year, an ordering cost of $6 per order and carrying costs of $1.60 per unit. What is the average inventory?

310 units 300 units 150 units 155 units None of the above

Question 9. The _________ is the time it takes to acquire and sell inventory.

cash cycle operating cycle inventory period accounts receivable period accounts payable period

Question 10.List three examples of short-term investments.