On the 1st of April, your company has sold some product to a customer on terms...

 

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On the 1st of April, your company has sold some product to a customer on terms 3/10 net 30, Dec 10. This means that the customer will get 3 percent discount for paying within 10th of December, otherwise full payment must be made by the 30th of December. the customer will get 3 percent discount for paying within the 20th of December. Otherwise full payment must be made by the 30th of December. the customer will get 3 percent discount for paying within the 20th of December. Otherwise full payment must be made by the 10th of January next year. the customer will get 3 percent discount for paying the seller 10th of April, otherwise full payment must be made by 30th of April. The objective of setting standard is to Determine which customers are eligible for credit and how much Judge the character of customers Determine if the customer will make an honest effort to pay. Determine if the customer has a standard economic condition in the market that it serves. A long cash conversion cycle is likely to be characterised by Low inventory No inventory In deciding the optimal level of current assets for a firm, its management is concerned with a tradeoff between Short-term and long-term borrowing Profitability and risk Equity and debt Liquidity and risk Mostafa LTD. sells its products on terms 3/10 net 40. 60 percent of the customers are expected to take the discount and pay on the last day of discount period. 35 percent are not expected to take the discount and pay on the last day of the credit period, while the remaining customers are expected to pay 10 days late. The days sales outstanding for Mostafa LTD. is approximately 23 days 40 days 25 days 20 days On the 1st of April, your company has sold some product to a customer on terms 3/10 net 30, Dec 10. This means that the customer will get 3 percent discount for paying within 10th of December, otherwise full payment must be made by the 30th of December. the customer will get 3 percent discount for paying within the 20th of December. Otherwise full payment must be made by the 30th of December. the customer will get 3 percent discount for paying within the 20th of December. Otherwise full payment must be made by the 10th of January next year. the customer will get 3 percent discount for paying the seller 10th of April, otherwise full payment must be made by 30th of April. The objective of setting standard is to Determine which customers are eligible for credit and how much Judge the character of customers Determine if the customer will make an honest effort to pay. Determine if the customer has a standard economic condition in the market that it serves. A long cash conversion cycle is likely to be characterised by Low inventory No inventory In deciding the optimal level of current assets for a firm, its management is concerned with a tradeoff between Short-term and long-term borrowing Profitability and risk Equity and debt Liquidity and risk Mostafa LTD. sells its products on terms 3/10 net 40. 60 percent of the customers are expected to take the discount and pay on the last day of discount period. 35 percent are not expected to take the discount and pay on the last day of the credit period, while the remaining customers are expected to pay 10 days late. The days sales outstanding for Mostafa LTD. is approximately 23 days 40 days 25 days 20 days

Answer rating: 100% (QA)

1 The customer will get 3 percent discount for paying within 10 days of the sale otherwise full payment must be made by the 30 th of December The cust... View the full answer