1)If a firm’s average collection period is 40 days, and the projected sales for the months of June, July and August 2022 are respectively, RM3,300, RM4,200, and RM2,700, what would be the total collection from sales in August 2022? [Assume 30 days in a month]
Select one:
A.RM3,800
B.RM1,000
C.RM3,600
D.RM2,800
2)The more a firm’s _____ assets are funded by _____ financing, the more flexible is the firm’s financing policy.
Select one:
A.permanent current; long-term
B.permanent current; short-term
C.temporary current; short-term
D. temporary current; long-term
3)Suppose the average collection period (ACP) of a firm falls from 45 days to 25 days and the firm has annual (365 days) sales of RM14.6 million. How will the firm’s receivables change?
Select one:
A.Rise by RM800,000.
B.Rise by RM40,000.
C.Fall by RM800,000.
D.Fall by RM40,000.