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CAMOD2 Exams Collection & CAMOD2 Exam Topic - CDFA CA Module 2 Exam New Study Notes - Dungseafood

CAMOD2

Exam Code: CAMOD2

Exam Name: CDFA CA Module 2 ExamCertification

Version: V16.75

Q & A: 400 Questions and Answers

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NEW QUESTION: 1
Which three interest rate calculation formula methods are supported in Receivables?
A. Simple
B. Declining Balance
C. Compound
D. Flat Rate
E. Average
Answer: A,C,D
Explanation:
Interest Calculation FormulasYou select the calculation formula in the Interest Calculation Formula field in the Charge Calculation Setup region in the Credit
Limits and Late Charges tab of the Customer Profile Class pages, or on the applicable customer or customer site profile.
The interest calculation formulas are:
*
Flat Rate: Use a flat rate to calculate the late charge amount. Receivables ignores the number of days that a payment is overdue. If you use balance forward billing and the average daily balance calculation method, then this is the calculation formula used. The formula is:
Amount Overdue * (Interest Rate/100)
*
Simple: Calculate late charges on overdue transactions only. If you use interest tiers and charge schedules to create late charges and penalties, then this is the calculation formula used. The formula is:
Amount Overdue * (Interest Rate/100) * (Number of Days Late/Number of Days in Period)
*
Compound: Calculate late charges on the sum of overdue transactions and prior late charges. The formula is:
(Amount Overdue + Prior Late Charges) * (Interest Rate/100) * (Number of Days
Late/Number of Days in Period)
https://docs.oracle.com/cd/E37583_01/doc.1116/e22896/F455009AN181AF.htm

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