You are doing some comparison shopping. Five stores offer the product you want at basically the same price.

Which one of the following time periods is included in the accounts receivable period but not in the cash collection period?    A.  the period of time between the receipt of a check and the availability of those funds B.  time it takes a firm to process incoming receipts C.  period of time a check is in the mail D.  the amount of time that it takes a bank to credit a firm's account for a deposit made E.  period of time it takes an invoice to reach a customer by mail Refer to section 20.1

22.

Which one of the following statements is correct if you purchase an item with credit terms of 1/5, net 15?    A.  If you pay within 1 day, you will receive a 5 percent discount. B.  If you pay within 5 days, you will receive a 1 percent discount. C.  If you do not pay within 15 days, you will be charged interest at a 1.5 percent monthly rate. D.  If you pay within 15 days, you will receive a 1/5th percent discount. E.  You must pay the discounted amount within 15 days. Refer to section 20.2

23.	You are doing some comparison shopping. Five stores offer the product you want at basically the same price. Which one of the following stores offers the best credit terms if you plan on taking the discount?        A.  store A B.  store B C.  store C D.  store D E.  store E Refer to section 20.2

24.	You are doing some comparison shopping. Five stores offer the product you want at basically the same price. Which one of the following stores offers the best credit terms if you plan to forego the discount?        A.  store A B.  store B C.  store C D.  store D E.  store E Refer to section 20.2

25.

Which one of the following statements is correct?    A.  The credit period begins when the discount period ends. B.  The discount period is the length of time granted to a customer to pay for a purchase. C.  The credit period begins on the invoice date. D.  With terms of 2/10, net 30, the net credit period is 20 days. E.  With EOM dating, all sales are assumed to have occurred on the 15th of each month. Refer to section 20.2