Management and Organizational Studies 2310A/B Study Guide - Final Guide: Liquid Oxygen, Asset Turnover, Operating Cash Flow

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Barry Hawn

Document Summary

Lo1 how firms manage their receivables and the basic components of a firm"s credit policies. Lo2 the distinct elements of the terms of sale. Lo3 the factors that influence a firm"s decision to grant credit. Lo5 the types of inventory and inventory management systems used by firms. Lo6 how to determine the costs of carrying inventory and the optimal inventory level. Answers to concepts review and critical thinking questions. 5. (lo1) a. b. c. d. e. in the future. A sight draft is a commercial draft that is payable immediately. A time draft is a commercial draft that does not require immediate payment. A bankers acceptance is when a bank guarantees the future payment of a commercial draft. A promissory note is an iou that the customer signs. A trade acceptance is when the buyer accepts the commercial draft and promises to pay it (lo2) trade credit is usually granted on an open account.