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1. Which of the following would not be used in an aging schedule of accounts rec

ID: 2739924 • Letter: 1

Question

1. Which of the following would not be used in an aging schedule of accounts receivable?

a.

customer

b.

days outstanding

c.

outstanding balance

d.

percentage outstanding

e.

percentage of cash sales

2. When using an ABC inventory analysis, the inventory items that make up approximately _______________ percent but account for approximately _______________ percent of the total costs are classified as A items.

a.

10 - 15 ; 75

b.

10 - 15 ; 10 - 15

c.

75 - 80 ; 10 - 15

d.

75 - 80 ; 75 - 80

3. Which of the following short-term loans makes use of warehousing to secure the loan?

a.

inventory loan

b.

line of credit

c.

accounts receivable loan

d.

factored loan

e.

none of the above

4. SBA loans can be obtained in which of the following ways?

a.

directly from the SBA

b.

loan from a bank with the SBA participating

c.

loan from a bank guaranteed by the SBA

d.

all of the above

e.

none of the above

5. The best way to pay the minimum price to a vendor is to take advantage of

a.

trade discounts, but not cash discounts.

b.

cash discounts, but not trade discounts.

c.

both trade discounts and cash discounts.

d.

neither discount, but to pay the invoice price on the due date.

1. Which of the following would not be used in an aging schedule of accounts receivable?

a.

customer

b.

days outstanding

c.

outstanding balance

d.

percentage outstanding

e.

percentage of cash sales

Explanation / Answer

1. The customer would not be used in an aging schedule of accounts receivable. 2. When using an ABC inventory analysis, the inventory items that make up approximately 10-15 percent but account for approximately   75 percent of the total costs are classified as A items. 3. Inventory Loan makes the use of warehousing to secure the loan. 4. SBA Loans can be directly obtained from the SBA. 5. The best way to pay minimum price to a vendor is to take advantage of both trade discounts and cash discounts.