11. Norquay Inc. manufactures computers. The company tries to minimize the amount of inventory it must carry and therefore only purchases required components after a customer order is received. The computers are usually completed within two days of the customer order and then shipped to the customer on the fourth day following the purchase of materials. Supplier's terms dictate that all purchases must be paid for within 30 days. Norquay offers a deferred financing plan to all of its customers that allow them a 60-day period of no payments or interest. Most of the customers pay their entire balance on the 60th
day following delivery of the computer. What is Norquay's inventory self-financing period?
A. 2 days
B. 4 days
C. 30 days
D. 34 days
12. Norquay Inc. manufactures computers. The company tries to minimize the amount of inventory it must carry and therefore only purchases required components after a customer order is received. The computers are usually completed within two days of the customer order and then shipped to the customer on the fourth day following the purchase of materials. Supplier's terms dictate that all purchases must be paid for within 30 days. Norquay offers a deferred financing plan to all of its customers that allow them a 60-day period of no payments or interest. Most of the customers pay their entire balance on the 60th
day following delivery of the computer. What is Norquay's inventory conversion period?
A. 2 days
B. 4 days
C. 30 days
D. 60 days
13. Norquay Inc. manufactures computers. The company tries to minimize the amount of inventory it must carry and therefore only purchases required components after a customer order is received. The computers are usually completed within two days of the customer order and then shipped to the customer on the fourth day following the purchase of materials. Supplier's terms dictate that all purchases must be paid for within 30 days. Norquay offers a deferred financing plan to all of its customers that allow them a 60-day period of no payments or interest. Most of the customers pay their entire balance on the 60th
day following delivery of the computer. How many days are there between receiving the inventory from suppliers and receiving cash for the company?
A. 2 days
B. 4 days
C. 26 days
D. 64 days
14. Which of the following best describes the inventory self-financing period for a company?
A. The time between when goods arrive at the company and when they are sold.
B. The time between when goods arrive at the company and when the cash is collected from their sale.
C. The time between when goods are paid for and when they are sold.
D. The time between when good are paid for and when the cash is collected from their sale.
15. Which of the following best describes the inventory conversion period for a company?
A. The time between when goods arrive at the company and when they are sold.
B. The time between when goods arrive at the company and when the cash is collected from their sale.
C. The time between when goods are paid for and when they are sold.
D. The time between when good are paid for and when the cash is collected from their sale.
16. Which of the following best describes the payable deferral period for a company?
A. The time between when goods arrive at the company and when they are sold.
B. The time between when goods arrive at the company and when they are paid to the supplier.
C. The time between when goods are paid for and when they are sold.
D. The time between when good are paid for and when the cash is collected from their sale.
17. Which of the following best describes the receivables conversion period for a company?
A. The time between when goods arrive at the company and when they are sold.
B. The time between when goods arrive at the company and when the cash is collected from their sale.
C. The time between when goods are paid for and when they are sold.
D. The time between when good are sold and when the cash is collected from their sale.
18. If a company is experiencing cash shortages, which of the following would help to resolve the problem of cash shortages?
A. If they increase the inventory conversion period.
B. If they increase the payables deferral period.
C. If they increase the inventory self-financing period.
D. If they increase the receivables conversion period.
19. If a company is experiencing cash shortages, which of the following would help to resolve the problem of cash shortages?
A. If they decrease the inventory conversion period.
B. If they decrease the payables deferral period.
C. If they increase the inventory self-financing period.
D. If they increase the receivables conversion period.
20. If a company is experiencing cash shortages, which of the following would help to resolve the problem of cash shortages?
A. If they increase the inventory conversion period.
B. If they decrease the payables deferral period.
C. If they increase the inventory self-financing period.
D. If they decrease the receivables conversion period.