Podcast
Questions and Answers
What authority does the credit manager have regarding credit limits?
What authority does the credit manager have regarding credit limits?
- To revoke all existing credit policies
- To modify the credit limit based on updated information (correct)
- To approve all sales transactions regardless of credit limits
- To permanently set credit limits without review
Which of the following is essential for the credit manager to effectively manage credit limits?
Which of the following is essential for the credit manager to effectively manage credit limits?
- Reviews of customer feedback and complaints
- Current and accurate information about account balances (correct)
- Knowledge of competitor pricing
- Historical sales trends without current data
Which activity is part of the sales order entry process?
Which activity is part of the sales order entry process?
- Setting customer credit limits
- Preparing a bill of lading
- Checking customer credit (correct)
- Approving sales returns
What is a primary responsibility of the credit manager?
What is a primary responsibility of the credit manager?
Why is it important for the credit manager to have updated information on customer accounts?
Why is it important for the credit manager to have updated information on customer accounts?
Which of the following tasks is primarily related to a credit manager's role?
Which of the following tasks is primarily related to a credit manager's role?
The credit manager requires outdated information to manage customer accounts effectively.
The credit manager requires outdated information to manage customer accounts effectively.
What is one activity that occurs during the sales order entry process?
What is one activity that occurs during the sales order entry process?
The credit manager has the authority to modify the credit ______.
The credit manager has the authority to modify the credit ______.
Match the following credit managerial activities with their descriptions:
Match the following credit managerial activities with their descriptions:
Flashcards
Credit Manager's Role
Credit Manager's Role
The process of setting up credit policies and approving credit extensions for customers.
Credit Limit Modification
Credit Limit Modification
Changes to a customer's credit limit requiring accurate information.
Sales Order Entry
Sales Order Entry
The process of recording a customer's order, including details like items, quantities, and delivery address.
Bill of Lading
Bill of Lading
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Sales Return Approval
Sales Return Approval
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Who is the credit manager?
Who is the credit manager?
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How does a credit manager modify a customer's credit limit?
How does a credit manager modify a customer's credit limit?
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What is the sales order entry process?
What is the sales order entry process?
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Bill of Lading Purpose
Bill of Lading Purpose
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What does approving sales returns involve?
What does approving sales returns involve?
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Study Notes
Revenue Cycle Activities
- Credit managers establish credit policies and approve credit extensions.
- Credit managers have the authority to modify credit limits. This requires accurate and updated information about account balances, sales, and customer remittances.
Sales Order Entry Process
- Checking customer credit is a part of the sales order entry process.
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Description
This quiz focuses on the key activities within the revenue cycle, highlighting the role of credit managers in establishing credit policies and managing credit limits. It also examines the importance of checking customer credit during the sales order entry process.
