Unit 33 quiz practice questions

Which one results in an increase in bad debts?

• Total accounts receivable increases

• Total accounts receivable decreases

• The credit limit is decreased

• The credit term is increased

What is ensured by defined organizational processes?

• Professional terms and conditions

• Fair and equal treatment

• Designated person to lead the process

• Improved customer loyalty

What skill is needed by staff responsible for following up on debts with customers?

• Being firm

• Being creative

• Being cautious

• Being friendly but firm

Accounts receivable appears in the

• Income statement

• Balance sheet

• Cash flow statement

• Equity statement

Terms and Conditions will include

• Products sold in the company

• Customer details

• Interest to be paid

• Customer survey

What is an organizational policy?

• Legal requirements

• Set of rules for a process

• Regulatory instructions

• Manufacturers’ codes

What is the importance of procedures in a company

• They define the strategy

• They provide the policies

• To ensure a standardized way of working

• They provide planning for short terms goals

If account receivable accounts are not paid it will result in a financial _____ for the company

• Loss

• Asset

• Profit

• Capital

Action taken in case of non-payment can be

• Increase the payment term

• Increase the interest

• Legal action

• Decrease the payment term

Bad debt is in the

• Income statement

• Balance sheet

• Cashflow statement

• Equity statement