Provmdea for dow'nloading

7.1 Objective Questions

I. Multiple Choice Questions
Cash terms implies
Sale on Credit
a) Sale on Cash b)
None of the
same

c)Consignment d)
5/10Implies
a) 5% Cash discount
b) Payment within 10 days
c)5% Cash discount allowed for paymentwithin 10 days.

d) None of the above

3. ALC is issued by
a) Seller b) Buyer
c)Banker d) Consigner
Credit Policy has the following aspects
a) Credit standard
b) Credit period
d) All of the above
c)Cashdiscount
Sources of credit information are
a) Bank References b) Trade Checking
All of the above
c)CreditBureaus d)
6. Agening Scheduleis
a) Agening of debtors b) Age of debtors
None of the above
c) Age of creditors d)
Consignment refers to

a) Supply of goods for sale

b) Supply of goods on approval.
c Supply of goods by sample
d) None of the above.

8. 5 C's include
b) Capacity
a) Character All of the above.
d)
c) Capital
include
9. Sources of credit information
b) Credit Bureau
a) Trade checking All of the above.
c) Bank Reference d)
10. Credit standard is
b) Standard
credit
a) Criteria to decide d) (a) and (c)
c)Part of credit policy
11. Increase in accounts receivable
a) Decreases working
capital
b) Increases working capital
c)Increases fixed capital
d) Both (a) and (b)
default in payment is
12. The cost incurred due to
b) Capital cost
a) Default cost
d None of the above
c) Both (a) and (b)
includes approval of
13 Credit evaluation
Character
b) Capacity
a) d) All of the above
c) Capital
Financial Statements
can judge
14. b) Short term solvency
a) Liquidity
d) All of the above
c) Long term solvency
15. Ageing schedule shows
Amount collected
a) Age of customers in years b)
d) None of the above
c) Goods sold
16. ABC analysis shows classification of debtors in
a) A Category b) B Category
c) C Category d) A, B, C category
customers is called as
17. The cost incurred to collect the dues from
-

b) Administrator cost
a) Collection cost
c) Default cost d) All of the above

18. Customers are created by

b) Credit sales
a) Cash sales
Consignment sales
Cash & credit sales d) b),
c) a), (7 a), (8 d), (9 -

d), (10 -

d), (11 -

d), (5 d), (6
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[Ans. (1 a), (2 c), (3 - c), (4

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-
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(17-a), (18-b)]
(12-a), (13-d), (14- d), (15-a), (16-d),
fri1e o r h s e