Posts tagged Accounts Receivable

Knowing how good you manage your accounts receivable is critical in managing the whole company’s financial. It could be meant: how good you pay your …

A product financing arrangement is a transaction in which an entity sells and agrees to repurchase inventory with the repurchase price equal to the original …

Thinking of accounts receivable: credit sales converted into accounts receivable (A/R), and then wash them when the corresponding cash is collected. That is what I …

The regulators do not permit a business organized as a C-corporation (in the United States) to use cash basis accounting. Instead, these companies must use …

Short-term financing may be used to meet seasonal and temporary fluctuations in a company’s funds position as well as to meet permanent needs of the …

Many treasury departments find that their performance falls outside of a company’s normal set of performance metrics. The standard of performance is earnings before interest, …

Accounts receivable financing has several advantages, including avoiding the need for long-term financing and obtaining a recurring cash flow base. Accounts receivable financing has the …

Confirmation of accounts receivable, including a financial institution’s loans, is a generally accepted auditing procedure. It is therefore presumed that the auditor will request the …

The collection of overdue accounts receivable can be a messy and prolonged affair that results in irate customers and poor collection results. However, when properly …

Accounts receivable management directly affects company’s profitability and cash flow. For example, too much money tied up in accounts receivable would be a drag on …

Accounts receivable represents the amounts due from customers for services rendered or goods sold in the past. Receivables from customers also are referred to as …

Your business sells products both at retail to consumers and to other businesses. You extend short-term credit to your business customers. Over the years, you …

The most inexplicable event for a senior-level manager is to see a profit at the bottom of the income statement, and yet field a request …

ACCOUNTING EQUATION – double entry bookkeeping where there is an identity of debit and credit elements of a transaction. For each transaction, the total debits …

The accountant is usually in charge of granting credit to customers, as well as collecting funds from them. These basic responsibilities give rise to a …