Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Dangers of over-reliance on trade credit
In effect for the reason that trade credit represents temporary borrowing from suppliers until invoices are paid it becomes an important method of financing the firm's investment in current assets. Firms perhaps tempted to view trade payables as a cheap source of finance especially as in the UK at least it is currently interest-free. Having a receivables' collection period smaller than the trade collection period may be taken as a sign of efficient working capital management.
Nevertheless trade credit is not free. First by impediment payment of accounts due the company may be passing up valuable discounts thus effectively increasing the cost of goods sold. Second extreme delay in the settlement of invoices can undermine the existence of the business in a number of ways. Existing suppliers perhaps unwilling to extend more credit until existing accounts are settled they may begin to attach a lower priority to future orders placed they may raise prices in the future or simply not supply at all. Additionally if the firm acquires a reputation among the business community as a bad payer its relationships with other suppliers may be soured.
Materials used by Company X in producing Division A's product are currently purchased from outside suppliers at a cost of $30 per unit. But the same materials are available from Di
Camp Corp had the following balances in its stockholders'' equity at jan 1: Common stock, $2, par value, 450,000 shares issued $900,000 Additional pd in capial 1,200,000 Retained
zorn conducted his professional practice through zorn, inc. the corporation uses a fiscal year ending september 30 even though the business purpose test for a fiscal year cannot be
Q. Explain the Negative Assurance? Negative Assurance - Report issued by an ACCOUNTANT based on limited procedures which states that nothing has come to accountant's attention
what are responsibilities of stock verifier
Assets 1) The classification of investments in the Balance Sheet will be under a few broad headings with schedules listing the individual assets. Where the Trustees Act has been
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 The beta coefficient
A of Surat consign goods to B of Jaipur to be sold at or above invoice price. B is entiled to get a commission of 8% on sales at invoice price plus 25% of any surplus price reali
i want assignment on bolt
Assume that you are interested in understanding how much must be saved regularly over a period of time in order that at the ending of the period you have a particular amount. To an
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd