Home  >  CS Executive  >  CS Executive Practice Test: Receivable Management

The sales Manager of AB Ltd. suggests that if the credit period is given for 1.5 months then sales may likely increase by ₹ 1,20,000 per annum. The cost of sales amounted to 90% of sales. The risk of non-payment is 5%. The income tax rate is 30%. The expected return on investment is 13,375 (aftertax). Should the company change its credit policy?

🎲 Try a Random Question  |  Total Questions in Quiz: 39  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
CS Executive Practice Test: Receivable Management — practice the complete quiz, review flashcards, or try a random question.
🧠 Flashcards (fast review) 🧪 Practice Quiz ⚔️ Challenge a Friend 🥊 📊 View Stats

The sales Manager of AB Ltd. suggests that if the credit period is given for 1.5 months then sales may likely increase by ₹ 1,20,000 per annum. The cost of sales amounted to 90% of sales. The risk of non-payment is 5%. The income tax rate is 30%. The expected return on investment is 13,375 (aftertax). Should the company change its credit policy?






ADVERTISEMENT
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.