Credit limit, Managerial Accounting

Credit Limit

A credit restriction is the maximum amount of credit that the firm will extend at a point of time. This indicates the extent of risk taken through the firm through supplying goods on credit to a customer. One time the firm has decides to extend credit to the customer the amount and interval of the credit will have to be determined. The amount of credit to be granted will base on the customer's financial strength.

Posted Date: 4/9/2013 5:20:46 AM | Location : United States







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