continuity of business operations by "wering prompt eversion of receivable into cash", Contbution of restly providing the necessary funds to insure no misunderstanding later, Che policy that should be explained to customers so that there will be customer a sense of ownership The prey or installment credit that should be big enough to give the operations. penses in installment selling you spend for people to run your credit customer/borrower up-to-date It may be done by machine or manually to keep the records of each Statement of account wed as basis for payment, it serves the dual purpose of confirmation and collection it ineludes the computation of an accounts receivable turnover ratio, and are designed to reflect activity and the efficiency of the credit and collection function. It can be cateulated by finding the relationship between the average balance of book of accounts and the credit sales for the period. The relationship (percent between monies collected and money available to collect. The ratio between total credit salesloans to bad debts. Statement of Account given to customer/borrower who wants to know how much balance he or she has, his/her purchases and payments during a given period. Nobody wants to share risks and benefits with a collaborator who thinks he is doing a favor by working with what he considers a "less than equal". Cantina C of credit man which means he must have a good public relations both within and outside business organization. Credit man must realize that he is dealing with human beings and must have regard for other's feeling, It should be adjusted to the useful life of the article you are selling. A policy in installment credit, to confine your installment sales to high value lines or be sure it is a major purchase for the customer. Cardinal C of credit man, meaning to have the ability to effectively convey his ideas, prepare reports and correspondence and delegate duties. Tip to minimize conflict by delaying a reply until you can talk out the problem in person. Characteristic of credit which means, the debtor must always be able to merit the trust and confidence of the creditor. TEST 3. ESSAY. Explain briefly(short only). Maximum of five (5) sentences only. A.Cardinal C of credit man: Certitude and Celerity PREPARED BY: PROF. CHONA V. CAYABAT twork The alert credit man is aware of the A Political B Social The alert credit man must read A2 B. 3 D. All the ve book/s a month The credit manager is a specialist, til judgment of credit A.Awareness B. Risk C. Decisions D. None of the above Securing prompt conversion of receivable models who contion of credit departe A. Support to sales effort C. Contribution to an B. Customer counseling D. None of the stove Cardinal C's that refers to personal characteristies like charming personality, cleanlines wat ong A. Computer literate C. Congeniality B. Considerateness D. Confidence A good credit man must have character, honesty, integrity, reliability A. Character C. Competitivene B. Confidence D. Contnet TEST 2 - Identification : Choose the correct answer from the following Postings Goods to sell Monthly statement Credit as a Pecuniary Contact Customer's desire Contribution to Financs Analysis of Receivables Confidence Carrying charges Turnover of accounts receivable Be humble Dawn Payment Collection Efficiency Exchange problem Salaries Installment Terms Bad debts loss ratio Goods to Sell Detailed statement Communication Be humble Avoid Memo Contact Credit as a Fiduciary Contract Consideration A policy on installment credit where major purchase means different things to various customers. Factor affecting decisions in installment selling, does your customers really want installment credit? Cardinal C, meaning trust that should work both ways between debtor and creditor. Nobody wants to share risks and benefits with a collaborator who thinks he is doing a favor by working with what he considers a "less-than-equal". Eliminating credit when one does not sacrifice independence when he share his problems with a collaborator. But if one is willing to accept constructive criticism. Characteristic of credit that means credit is always expressed in terms of money. ANIUYEN UNIVERSITY UTAZON STATIVY Se Republe of Vietnam w Phule International Training Center BSDA 24 Credit and Collection Management Midterm Em NAME Ani Date: May Vay Score TEST 1. Multiple Choice. Encircle the correct answer LETTER only. No erasures allowed. Cardinal C's of Credit Man, it means Credit man must not unnecessarily deviate, nor completely veer away from policies and guidelines to nccommodate friendships and other personal consideration A Communication C. Consistency B. Certitude and Celerity D. Common Sense Cardinal C's, meaning Credit man must be devoted and dedicated to his job and must serve as catalyst of the members of the credit team. A. Conscientiousness C. Creativity B. Constructiveness D. Communication Credit C's of credit man, it means credit man must know his areas of responsibility, A. Competence and Capability C. Contact 1. Creativity D. Cost consciousness Characteristic of Credit where it always involves two parties, the creditor and the debtor. A. Credit as a pecuniary contract C. Credit as a bipartite contract B. Credit as a fiduciary contract D. None of the above Credit functions as a medium of exchange because it is A. Faster C. Convenient B. Safer D. All the above Credit is always expressed in terms of money because credit is A Bi-partite contract C. Credit as a fiduciary contract B. Is a pecuniary contract D. None of the above The primary role of credit is to maximize A. Sales B. Debts and minimize losses. C. Profit D. All the above Credit manager's decision is final, subject only to review by A. Treasurer C. Financial vice president B. CEO D. None of the above A tip to minimize conflict between sales and credit and collection where collaborators are invite meetings. A. Be humble C. Keeping the collaborator informed B. Accept responsibility for failure D. All the above