test part 1

FIN 2 Financial ManagementQuiz #3Name: ______________ ___________________________ Date: ________________Identification:____________ 1. Refers to accounts receivable uncollected as subsequently written off.____________ 2. The rate at w/c the firm could borrow funds to finance sales.____________ 3. Consist of more specialized forms of credit bureaus._____________4. Are institutions organized for the exchange of ledger information among associated creditors?_____________5. Financial resources of the credit applicant._____________6. The ability of the applicant to operate successfully._____________ 7. The reputation for honesty and fair dealing of the applicant or the owners of the firm applying for credit._____________ 8. The method used to determine what quantity to order so as to minimize total inventory cost._____________9. The portion of the inventory used for expected seasonal, cyclical and secular changes in inventory._____________10. The activity that keeps track of how many of the produced items needed to create a product or service are on hand._____________11. It is B that, oftentimes , provide the funds necessary for liquidity._____________12. It is the letter I that refers to credit flowing from a large business to small business._____________13. What is the L that refers to the ability of the firm to pay its bills on time or otherwise, meets its current obligations.____________ 14. A letter C with a high degree of precision and reliability provides the firm with realistic approaches to planning and budgeting.____________ 15. The letter W refers to that part of the capital of the company which is continually circulating.____________16. Letter I that earns nothing and even if it is kept in a bank; the interest it earns is minimal.__________17. It is the letter L that refers to activities geared towards achieving the liquidity objectives of the firm.__________18. It is the letter G which is the total amount of the firms current assets.__________19. It is the letter W which is the total amount of current assets minus current liabilities. __________20. The letter C that may be utilized by the firm to earn higher returns.Page | 1