Management of account receivable, Finance Basics

Management of Account Receivable

In order to keep current customers and attract new ones, most firms find it necessary to offer credit. Accounts receivable represents the extension of credit on an open account by a firm to its customers. Accounts receivable management begins with the decision on whether or not to grant credit.

The net amount of obtainable outstanding at any given time is determined via as:

a) The volume of credit sales

b) The average length of time between collections and sales.

Accounts receivables = Credit sales per day x Length of collection period

The average collection period depends on:

a) Credit standards that is the maximum risk of such acceptable credit accounts

b) Credit period that is the length of time for such credit is granted

c) Discount given to early payments

d) The firm's collection policy.

Posted Date: 1/31/2013 8:14:36 AM | Location : United States







Related Discussions:- Management of account receivable, Assignment Help, Ask Question on Management of account receivable, Get Answer, Expert's Help, Management of account receivable Discussions

Write discussion on Management of account receivable
Your posts are moderated
Related Questions
what is the importance of public expenditure

You buy a SML Bond for $980.  The bond has a face value of $1000 and an yearly  coupon rate of 8%.  There are five years left until maturity. a. What is the yield to maturity on

Management of company and Directors They will consequently be interest in as: a) In generating profits efficiency of the company b) The company's capability to generate

Constant DPS plus Extra or Surplus 1. Beneath this policy a constant DPS is paid every year. Nonetheless extra dividends are paid in years of supernormal earnings. 2. It prov

Obtain a copy of a Comprehensive Annual Financial Report (CAFR) for a state or local government for which you would have an interest. Answer the following questions regarding that


A bondholder buys a bond maturing in two years for Rs. 120 and earns Rs.15 per annum as interest. His YTM is ______ %.

I need help with financial econometric questions, i got stuck in finding answers for my homework, Can you provide engineering level financial econometric homework help? I need expe

Question 1: (a) (i) What are Asset shares? (ii) State the purpose of calculating Asset shares. (b) Outline the five uses of policy Asset shares? (c) Lif

Define the term - Finding a Broker Selection of a broker depends largely on the kind of services rendered by a specific broker as well as upon the type of transaction that a