Reference no: EM132822545

Problem 1: In financing of receivables, which of the following pertains to notes receivable?

Option 1: Discounting
Option 2: Factoring
Option 3: Pledge
Option 4: Assignment

Problem 2: Which of the following statements is correct?

Option 1: The balances of net credit sales and accounts receivables do not affect the accounts receivable turnover ratio.
Option 2: The higher the accounts receivable turnover will result to longer days for the account to be collected.
Option 3: The bigger the accounts receivable balances will result to higher accounts receivable turnover ratio.
Option 4: The lower the net credit sales, the lower the accounts receivable turnover ratio.