of the credit policy to (a) the credit department and (b) customers.
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Q: Effective credit management involves establishing credit standards for extending credit to…
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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.
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- 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?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 KarmaThere 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. 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…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 collection policy Consider the case of Mammoth Pictures Inc.: Mammoth Pictures Inc.'s CFO has decided to take a closer look at the company's credit policy. Mammoth Pictures Inc. has annual sales of $396.3 million, and it currently has an accounts receivable balance of $47.6 million. The first step in analyzing the firm's credit policy is to determine its days sales outstanding (DSO). Based on this information, Mammoth Pictures Inc.'s DSO is The average DSO for Mammoth Pictures Inc.'s industry is 51.2 days. Assuming that its sales…
- 1. Describe the importance of a credit score for financial planning. 2. List the credit bureaus and list information that is contained in a person's credit report. 3. Review at least two sources of free credit reports, such as Credit Karma or any other site that you are familiar with. As described on one of these sites, name the factors that affect credit scores. 4. Propose a strategy that is expected to increase a person's credit score.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 timeThe 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
- 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. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company's credit standards Consider the case of Sombra Corp.: Sombra Corp. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Sombra Corp. sells to its customers on credit terms of 1/10, net 30. If a customer bought $100,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Sombra Corp. get from the customer? $90,000 O $105,000 $82,500 $99,000 If the customer paid off the account after 15 days, Sombra Corp. would receive Approximately 35% of Sombra Corp.'s customers take advantage of…Effective credit management involves establishing credit standards for extending credit to customers, determining the company’s terms of credit, 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. The conditions of the credit sale, including cash discounts and due dates, are indicated by the company’s (______) . Consider the case of Newtown Co.: Newtown Co.’s CFO has decided to take a closer look at the company’s credit policy. Newtown Co. has annual sales of $402.8 million, and it currently has an accounts receivable balance of $47.6 million. The first step in analyzing the firm’s credit policy is to determine its days sales outstanding (DSO). Based on this information, Newtown Co.’s DSO is (_____) . (Note: Use 365 days as the length of a year in all calculations. Do not round intermediate calculations. Round your answer to one…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. The minimum financial strength a customer must have to be granted credit is indicated by the company’s . Consider the case of Universal Exports Inc.: Universal Exports Inc. has a very attractive credit policy, and none of its customers pays in cash when the firm makes a sale. Universal Exports Inc. sells to its customers on credit terms of 1/10, net 30. If a customer bought $150,000 worth of goods and paid the firm cash eight days after the sale, how much cash would Universal Exports Inc. get from the customer? $157,500 $148,500 $120,000 $127,500 If the customer paid off the account after 15 days, Universal…