The higher the receivables turnover, the O higher the collection period. O more liquid the company's receivables are. O higher the credit sales. O poorer the receivables management.

Problem Attached

Concerning factoring, all of the following are true except? *         factoring is done at a discount to the third party purchaser       factoring speeds the inflow of cash to the seller of the receivables       receivable lending is the process of factoring       factoring discounts are often a function of the riskiness of the receivables

Which of the following is/are a sign that a company can quickly turn its receivables into cash (may have more than one answer)? Check All That Apply a)A high average collection period. b)A low average collection period. c)A low receivables turnover ratio. d)A high receivables turnover ratio.

Which of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory level

What does a firm need to do to improve liquidity?   Extend credit terms to customers in order to gain more sales Stock up on inventory in order to never run out of stock Pay all bills and payables when due Speed up collection of accounts receivable from customers

Which of the following statements is false? O A. A positive cash conversion cycle means the company is paying its payables before receiving its receivables. B. A negative cash conversion cycle means the company is collecting its receivable before paying its payables. C. The cash conversion cycle is the length of time required for the company to recieve its inventory and then receive cash from the sales of its inventory. D. All of the above statements are true.

Receivables are valued and reported in the statement of financial position at their gross amount less any sales returns and allowances and less any cash discounts. True or False

What si the financial manipulation? How does it involves a considerable decrease in the number of days sales outstanding?