Answer Happy

1. Factoring refers to:
Group of answer choices
determining the aging schedule of the firm's accounts
receivable.
scoring a customer based on the 5 C's of credit.
the determination of the average collection period.
All are correct.
the sale of a firm's accounts receivable to a financial
institution.
2. In credit analysis of a customer, commonly used information
includes the customer's:
Group of answer choices
credit report.
All are correct.
financial statements.
payment history with the firm.
3. When analyzing the decision to change the cash discount
policy, the firm should:
Group of answer choices
choose the policy with the highest NPV.
choose the policy with the lowest variable cost.
choose the policy offering the lowest cash discount.
choose the policy with the highest order size.
choose the policy with the lowest NPV.