The process of evaluating the credit policy

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Reference no: EM132016112

1. The process of evaluating the credit policy to determine whether a shift in the customers' payment patterns has occurred is called _____.?

a. concentration banking

b. receivables monitoring

c. relaxed management

d. payables management

e. a lockbox system

2. Reston Inc. has expected sales of $17,000,000. While 10 percent of its customers pay cash, the remaining 90 percent pay on credit with 40 percent paying on Day 10, 30 percent paying on Day 20, 15 percent paying on Day 25, and 15 percent paying on Day 30. Which of the following is Reston's days sales outstanding (DSO) ?

a. 18.25 days

b. 14.33 days

c. 17.65 days

d. 10.12 days

e. 12.46 days

Reference no: EM132016112

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