stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
CRCM Final Revision Quiz Flashcards | StudBud
Explore
/
CRCM Final Revision Quiz
CRCM Final Revision Quiz
17 terms
·
StudBud Administration
·
20 plays
Imported from external platform
Flashcards
17 cards
F
Practice quiz
P
Host live
L
Questions
17
Answers
1
What is the cost of granting settlement discount of 1.5% within 30 days. Normal terms- 60 days
18.53%
15.00%
12.23%
26.50%
2
With recourse factoring the factor bears the risk of irrecoverable debts.
TRUE
FALSE
3
Annual sales for a customer = £12k excl VAT. Owe £1,700 at the y/e. Trade rec. period is:
43.09 days
51.71 days
51.00 days
42.50 days
4
Which of the following is not a service provided by a debt factor?
Despatch of goods
Advance of funds
Administration of the receivables ledger
Insurance against irrecoverable debts
5
30 day terms, 2% settlement discount for payment in 14 days. Simple annual interest rate is:
52.14%
60.0%
24.33%
46.56%
6
Customer owes £14,400 inc VAT. 60% is credit insured. Can claim:
£2,880 VAT, £11,520 insurance
£2,400 VAT, £7,200 insurance
£2,880 VAT, £6,912 insurance
£2,400 VAT, £9,600 insurance
7
Customer owes £1,500 excl VAT. Debt is 50 days late. Bank base rate 1.75%. Interest charged is
£24.04
£20.03
£31.50
£4.31
8
Under an invoice discounting agreement the company collect the debts itself
False
True
9
Under a whole turnover policy of credit insurance which of the following would be true?
Half of all receivables are covered by the policy
Specific receivables are insured
Irrecoverable debts are insured above an agreed limit
Upto 80% of receivables are covered for their entire amount
10
Bank base rate is 2.5%. Late payment interest can be charged at:
10.5%
2.5%
12.5%
11.5%
11
80% of trade receivables are insured for their entire amount and any claim is paid in full
Partial turnover policy
Whole turnover policy
Annual aggregate excess policy
Specific receivables policy
12
Customer owes £14,400 inc VAT. 60% is credit insured. Make a provision for:
£8,640
£7,200
£5,760
£4,800
13
Sales increased from £225,000 to £330,000. Percentage increase is:
146.67%
46.67%
68.18%
31.82%
14
Payment terms are net monthly. Goods delivered 2 May and invoiced on 27 April. When is due date
2 June
27 May
30 May
30 June
15
How do debt collection agencies normally charge for their services?
A percentage of total receivables
A flat fee upfront
A percentage of amounts collected
A monthly flat rate fee
16
28 day terms, 1% settlement discount for payment in 7 days. Simple annual interest rate is:
26.47%
44.57%
52.14%
17.56%
17
The purpose of credit insurance is to allow a business to
Claim back legal costs of any court proceedings
Claim back costs of employing temporary credit control staff
Claim back amounts owed to it by customers who default
Continue to meet interest payments on loans
