* Explain Internal sources of credit information for a firm include(Choose all that apply).O information from sales representativesO financial statements for recent yearsa Dun & Bradstreet Business Credit Services reportO a credit application

Second option is wrong because financial statements are published and can be used as an external…

Answered: Internal sources of credit information…

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter3: Setting Up A New Company

Section: Chapter Questions

Problem 1M

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Read each definition below and write the number of the definition in the blank beside the appropriate term. The quiz solutions appear at the end of the chapter. Event External event Internal event Transaction Source document Account Chart of accounts General ledger Debit Credit Double-entry system Journal Posting Journalizing General journal Trial balance A numerical list of all accounts used by a company. A list of each account and its balance; used to prove equality of debits and credits. A happening of consequence to an entity. An entry on the right side of an account. An event occurring entirely within an entity. A piece of paper that is used as evidence to record a transaction. The act of recording journal entries. An entry on the left side of an account. The process of transferring amounts from a journal to the ledger accounts. An event involving interaction between an entity and its environment. A record used to accumulate amounts for each individual asset, liability, revenue, expense, and component of stockholders equity. A book, a file, a hard drive, or another device containing all of the accounts. A chronological record of transactions. Any event that is recognized in a set of financial statements. The journal used in place of a specialized journal. A system of accounting in which every transaction is recorded with equal debits and credits and the accounting equation is kept in balance.
From the following list, identify which items are considered original sources: A. prepaid insurance B. bank statement C. sales ticket D. general journal E. trial balance F. balance sheet G. telephone bill H. invoice from supplier I. company sales account J. income statement
Effective credit management involves establishing credit standards for extending credit to customers, determining the company’s credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. A. How a company handles its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company’s . Consider the case of Sombra Corp.: Sombra Corp.’s CFO has decided to take a closer look at the company’s credit policy. Sombra Corp. has annual sales of $384.4 million, and it currently has an accounts receivable balance of $45.9 million. The first step in analyzing the firm’s credit policy is to determine its days sales outstanding (DSO). B. Based on this information, Sombra Corp.’s DSO is . (Note: Use 365 days as the length of a year in all calculations.) C. The average DSO for Sombra Corp.’s…
Effective credit management involves establishing credit standards for extending credit to customers, determining the company’s credit terms, and setting up procedures for invoicing and collecting past-due accounts. The following statement refers to a credit management policy. Select the best term to complete the sentence. How a company handles its credit accounts, including methods of invoicing and collecting past-due accounts, is indicated by the company’s . Consider the case of Three Waters Co.: Three Waters Co.’s CFO has decided to take a closer look at the company’s credit policy. Three Waters Co. has annual sales of $384.4 million, and it currently has an accounts receivable balance of $45.4 million. The first step in analyzing the firm’s credit policy is to determine its days sales outstanding (DSO). Based on this information, Three Waters Co.’s DSO is . (Note: Use 365 days as the length of a year in all calculations.) The average DSO for Three…
Based upon the given financial statement, would you provide a credit line to this company? Support your decision by reference to your work in parts (1) through (4).
When a company decides to extend credit to consumers, it is making an investment decision in: a. Trade Credit b. Accounts Receivables c. Inventories d. Marketable Securities
Under what circumstances would accounts receivable be posted as a credit balance : A. When the business provides additional credit to itscustomer B. When the business receives additional revenue C. when the business receives additional revenue D. When the business pays to its suppliers
To assist a firm in managing its accounts receivable, marketing principles such as the five C’s of Credit areemployed. For companies operating in the international landscape, briefly describe one additional ‘C’ that mustbe accounted for and managed appropriately.
The credit bureau score model of credit scoring examines: Group of answer choices D. In-house data collected A. Credit card data collected from several banks B. Applicant profile C. FICO scores
Internal users of accounting information include all of the following except? (a) Store manager (b) Creditor (c) Chief executive officer (d) Chief financial officer
The amount to be paid by the business to the supplier who supplied the material on credit is a. Creditor b. Accounts payable c. Accounts receivable d. Supplier
From the following list, identify which items are considered original sources: prepaid insurance bank statement sales ticket general journal trial balance balance sheet telephone bill invoice from supplier company sales account income statement

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