of the credit policy to (a) the credit department and (b) customers.
Q: Your first major assignment after your recent promotion at Ice Nine involves overseeing the…
A: Account Receivables: The amount of money owing to a company for products or services provided or…
Q: indicators that a company is doing an effective job at managing accounts receivable
A: Accounts receivable is the earnings of the company for which the payment has not been made by the…
Q: A customer of a Bank Nizwa wants to know about the accounting treatment of advancing loans to Public…
A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…
Q: After all the ledgers had been drawn up, the following differences and errors were identified.…
A: The following ledgers have been rectified as per the given information.
Q: One of our banks has three loan officers -- one officer handles home and personal loans, one officer…
A: There are several sources from which the bank earnings its income, and lending money to customers…
Q: The control procedure “credit sales approved by credit department” is directed toward which…
A: Existence assertion relates to asserting if the transaction has actually taken place. Completeness…
Q: Banks are specifically interested in accounts receivable and inventory as these are collateral for a…
A: Account Receivables are the current asset of the company. It is listed in balance sheet of the…
Q: Effective credit management involves establishing credit standards for extending credit to…
A: a) How a company handles its credit accounts, including methods of invoicing and collecting past-due…
Q: Companies like to use statistical scoring systems, such as the Z score, to assess a customer's…
A: z score is used to determine the reliability in predicting the bankruptcy one or two years before…
Q: credit level report, receivable aging report, bad debt report, and customer profitability report.…
A: The department of credit and collections helps in providing with solutions on how to deal with…
Q: Which one of the following best defines the term credit scoring? A. Categorizing customers…
A: The statistical tool used to analyze the performance by lenders and financial institutions so as to…
Q: Which of the following will decrease the home office account of the branch? Credit memo received…
A: Home office account in the books of branch is a credit balance account. Any amount which is to be…
Q: Which of the following is not a company that can provide you with a look at your credit score? a.…
A: There are three companies given in the question which are working in the credit field: Credit Karma…
Q: From pages 5-1 and 5-3 of the LVN, match the term with its explanation. Put the answers in the right…
A: The pages attached provide us with an understanding of how credit transactions are recorded and how…
Q: procedures for expenses and its related payable. In testing the completeness/cut-off assertion, what…
A: cut off procedures and procedures which are applied at the end of accounting period this is done…
Q: 1. What would a credit manager do if a sales order received caused a customer to exceed its credit…
A: The credit manager should disapprove the sales order as it will increase the collection period…
Q: After all the ledgers had been drawn up, the following differences and errors were identified.…
A: Rectification entry has to be passed when any error has been made in the books of accounts and…
Q: The journal entry to record the sale of services on credit should include:(a) Debit to debtors and…
A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…
Q: B. trial balance C. chart of accounts D. income statement 8. Sales to customers who use bank…
A: 7.(b) trial balance Trial balance is used to check that total debits equal total credits and shows…
Q: a. Based on the above sales system of Adel & Co, suggest SIX tests of controls the auditor could…
A: Test of Controls: It is the type of audit procedure that the Auditor performs in order to evaluate…
Q: After all the ledgers had been drawn up, the following differences and errors were identified.…
A: Debtor- It defines those persons who get goods from the entity not in cash but on credit or any…
Q: Discuss how the three primary credit bureaus (Equifax, Experian & TransUnion) differ in credit…
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: After all the ledgers had been drawn up, the following differences and errors were identified.…
A: Rectification entry has to be passed when an error has been made in the books of accounts and cannot…
Q: mportance of a credit score for financial planning.
A: Since there are multiple questions are given, so as per answering guidelines we do only first one.
Q: A bank is considering implementing a business rules management system for assessing the risk and…
A: A business rule management system, often known as a BRMS, is a software system that is used to…
Q: The accountant at Borris Co has prepared the following reconciliation between the balance on the…
A: We have the following information: Balance on general ledger control account = $68,566 Credit…
Q: The following are numerous management assertions associated to sales and account receivable. Account…
A: Assertions are claims that are made by the management of the business entity that the information…
Q: Discuss how the three primary credit bureaus (Equifax, Experian & TransUnion) differ in credit…
A: (a) THE BIG THREE CREDIT BUREAUS- In the U.S. there area unit many totally different credit bureaus,…
Q: Under a system of good internal control, which of the following departments issues a voucher?…
A: Under a good internal control system, the main department in the business organizations are:…
Q: The credit bureau score model of credit scoring examines: Group of answer choices D. In-house data…
A: Credit bureau examines the applicant credit worthiness before granting a loan. If applicant has good…
Q: (e) Estimate the cost of additional investment in account receivable and inventory associated with…
A: Solution:- e) Calculation of the Estimate the cost of additional investment in account receivable…
Q: Which of the following is/are primary sources of data? i. Data collected by a bank through telephone…
A: Following are primary sources of data
Q: Discuss how the three primary credit bureaus (Equifax, Experian & TransUnion) differ in credit…
A: Answer 1: Equifax credit score is a three-digit number that is calculated using your credit history…
Q: Your first major assignment after your recent promotion at Ice Nine involves overseeing the…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Explain three types of good financial analysis that must be conducted by the credit officer in the…
A:
Q: Effective credit management involves establishing credit standards for extending credit to…
A: Company provide credit to customers and discount to customers to increase sales.
Q: Effective credit management involves establishing credit standards for extending credit to…
A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…
Q: Explain how exception reporting would be invaluable to the manager of a credit department.
A:
There are four reports used by the credit and collections department those are credit level report, receivable aging report,
Discuss the benefits of the credit policy to (a) the credit department and (b) customers.
Step by step
Solved in 3 steps
- There are four reports used by the credit and collections department those are credit level report, receivable aging report, bad debt report, and customer profitability report. Explain the importance of each reports in the effective performance of the credit and/or collection.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…Question: The credit worthiness of a customer is normally checked by the organization's Credit Control Department, before any credit sales is approved. reqiured: state why this process is important?
- 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…Which one of the following best defines the term credit scoring? A. Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases B. Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding C. Evaluating the opportunity costs of a credit policy D. Process of quantifying the probability of default when granting credit to customers E. Tracking of both the number and the size of customer orders over a period of timeCompanies like to use statistical scoring systems, such as the Z score, to assess a customer's creditworthiness because: they provide an absolute determination of which customers deserve credit. their use keeps the credit department busy. they provide information related to the 5 Cs of credit. they eliminate all need for full-blown detailed credit checks. they provide a quick first-cut estimate of creditworthiness.
- Describe the importance of a credit score for financial planning. List the credit bureaus and list information that is contained in a person's credit report. Review at least two sources of free credit reports, such as Credit KarmaWhich of the following statements is correct? Select one: a. Account receivable turnover is equal to net credit sales divided by average net accounts receivable. b. Buying aged receivables from businesses and then collects the payments directly from the customers is called Allowance for uncollectible accounts. c. Auto generated document numbers is a fraud preventive method which is more efficient than physical controls. d. If the same people are responsible for a series of related accounting activities is called Segregation of Duties.Which of the following is not one of the three primary credit bureaus? Group of answer choices A. the amount of credit used each month. B. credit utilization. C. credit inquiries. D. credit payment history.
- The control procedure “credit sales approved by credit department” is directed toward which assertion?a. Existence/Occurrence.b. Completeness.c. Valuation/Accuracy.d. Cutoff.Working with a company that is able to pay its bills is important. The Balance Sheet is a great place to start when evaluating a company's creditworthiness. Which Balance Sheet accounts would you use to perform your evaluation? How would you use the Balance Sheet to determine creditworthiness?What notice given to the customer explains that we may report ingormation to the credit bureaus
