Exam 22: Managing the Firms Assets

After identifying the stages of the accounts receivables life cycle,discuss areas that are of concern in the process.

The goal of the cash conversion period is to have as few days as possible in the process so as to be able to finance other activities with working capital.

Software programs can provide adequate assistance in inventory identification and control.

Discounted cash flow techniques answer the question of:

Lester is watching the bank balance decline throughout the month and hopes his company won't run out of money before it runs out of month.Lester is concerned about the net cash flow,which is:

Match the term with its definition.Some terms may not be used. a.Accounting return on investment technique b.Capital budgeting analysis c.Discounted cash flow techniques d.Internal rate of return e.Net present value f.Payback period technique g.Working capital cycle h.Working capital management -Capital budgeting techniques that compare the present value of future cash flow with the cost of the initial investment

The longer the cash conversion period,the greater the potential for cash flow problems to exist for a company.

The management of a small firm's long-term assets is called capital budgeting.

In a healthy business,cash flow is typically even.

"How long will it take to recover the original investment outlay?" is answered using

Lucinda has decided to use a _______________ to speed up the processing of inovice payments.

Pledging accounts receivable can indicate troublesome accounts.

Match the term with its definition.Some terms may not be used. a.Cash conversion period b.Cost of capital c.Days in inventory d.Days in payables e.Days sales outstanding f.Lock box g.Pledged accounts receivable h.Working capital management -The time required to convert paid-for inventory and accounts receivable into cash

Accounts receivable financing might include

The first step in the working capital cycle process is to

The under-capitalization and liquidity problems of a small firm can directly affect the decision-making process,and survival often becomes the top priority.

"How many dollars in average profits are generated per dollar of average investment?" is answered using