The period of time that extends from the day a credit sale is made until the day the bank credits a firm's account

What is the primary purpose of credit analysis?    A.  determine the optimal credit period B.  establish the effectiveness of granting a cash discount C.  determine the optimal discount period, if any D.  access the frequency and amount of sales by customer E.  evaluate whether or not a customer will pay Refer to section 20.1

18.	The period of time that extends from the day a credit sale is made until the day the bank credits a firm's account with the payment for that sale is known as the _____ period.    A.  float B.  cash collection C.  sales D.  accounts receivable E.  discount Refer to section 20.1

19.

Which one of the following will increase a firm's investment in accounts receivables?    A.  a decrease in the number of days for which credit is granted B.  a decrease in credit sales C.  an increase in cash sales D.  a decrease in the average collection period E.  an increase in average daily credit sales Refer to section 20.1

20.

A firm's total investment in receivables depends primarily on the firm's:    A.  total sales and cash discount period. B.  cash to credit sales ratio. C.  bad debt ratio. D.  average collection period and amount of credit sales. E.  amount of credit sales and cash discount percentage. Refer to section 20.1