1.With respect to inventory management,: A) a decrease in a firm’s inventory turnover means inventory management is of poor quality. B) a decrease in a firm’s days of inventory on hand indicates better inventory management and can lead to increased profits. C) a firm with inventory turnover higher than the industry average can be expected to have better profitability as a result. D) an increase in days of inventory on hand can be the result of either good or poor inventory management.
2.A result that is most likely to give a financial manager concern that his firm’s credit policy may have become too lenient is:
A) inventory turnover has decreased considerably. B) accounts receivable as a percentage of sales has decreased. C) receivables turnover has increased significantly. D) weighted average collection period has increased.
3.Which of the following strategies is most likely to be considered good payables management?
A) Paying trade invoices on the day they arrive. B) Paying invoices after the discount period but prior to their due date. C) Taking trade discounts only if the firm’s annual return on short-term investments is less than the discount percentage. D) Paying invoices on the last possible day to still get the supplier’s discount for early payment. | 
发表于 2008-4-9 10:20
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