Financial Management

It represent the amount of money to be collected from individual or firms.

• Receivables
• Account Receivable Management
• Trade Credit

Firms grant credits in order to increase the sales volume.

• Receivables
• Account Receivable Management
• Trade Credit

It is expected to be realized in cash within the normal operating cycle or in one year, whichever is longer, are classified as current assets.

• Trade Receivables
• Non- trade Receivables
• Receivables

It is one of the factors that influence the accounts receivables. It exists from the time goods sold or services are rendered on accounts.

• Variable and Fixed cost
• Bad Debt Expense
• Float on Receivables

This kind of expense is incurred when companies grant credits to because customers who do not have a good credit standing, or customers who fail to pay their obligation because of downturn in the economy.

• Variable and Fixed cost
• Bad Debt Expense
• Float on Receivables

The concept of this is the accounts receivable is the same as the concept of placing money in the special time deposit.

• Cash Discounts
• Cost of Capital
• Credit Policy

Firms with customers who prolong payments are expected in have a higher level of receivables.

• Paying practice of the customers
• Collection Policies
• Volume of Credit Sales

Firms that mostly grant sales on credit have a higher level of receivables.

• Paying practice of the customers
• Collection Policies
• Volume of Credit Sales

Firm's with lenient collection policy have higher levels of receivables than firms which stricter collection policy.

• Paying practice of the customers
• Collection Policies
• Volume of Credit Sales

The level of accounts receivable depends on the length of the term credit.

• Term Credit
• Collection Policies
• Volume of Credit Sales