Companies sometimes convert receivables to cash before they are due by selling them or using them as security for a loan. The reasons that a company may convert receivables before their due date include:Multiple select question.to satisfy customer's needs.the company does not want to deal with collecting receivables.to quickly increase profit.the company needs cash.

The two methods companies can use to convert receivables to cash before they are due includes selling them and pledging them.True false question.TrueFalse

What is occurring if a company is debiting Cash and crediting Notes Receivable?Multiple choice question.It is collecting the principal on amounts lent earlier.It is borrowing money.It is paying amounts owed on amounts borrowed earlier.It is lending money.

To speed up the cash conversion cycle a company can: (Check all that apply).Multiple select question.negotiate short time to pay suppliersoffer customers a discount for prompt paymentadopt lean inventory principlesoffer customers more days to payoffer customers fewer days to pay

The cash disbursements system processes the payment of obligations created in the purchases system.Select one:TrueFalse

Because most companies receive payments for the sale of products and services either in the form of cash or as a check received through the mail,Multiple choice question.cash should be audited weekly.accounting systems must be audited annually.internal control over cash receipts is important.