economic changes? Capacity: Capacity: Collateral: Do they have cash to pay? Do they have assets for security? Credit Standards • Relaxation of credit selection standards may lead Relaxation to higher sales‚ higher debtors and higher debtors. [Vice-versa] Credit Terms • Term of sales: for credit to be extended to buyers. Term • Stated as a/n‚ net c • Annualized Opp. Cost = [a/(1-a)] x [360/(c-b)] Cash Discounts • An incentive for customer to pay earlier. • Help
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RECEIVABLE MANAGEMENT OF INDIAN AUTOMAKERS IN A REVIVED SCENARIO *P.Nageswari ‚** E.Bennet‚ *** Dr.M. Selvam Abstract January 2010 marks a milestone in the automotive journey of the country with Maruthi Suzuki‚ Tata Motors‚ Mahindra & Mahindra and General Motors India reporting their highest ever monthly sales. A firm’s profitability is determined partly by way of its working capital management. An efficient management of working capital will yield significant results and its neglect can be highly
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concerned asset in the Balance Sheet. 7. To write off bad debts Bad Debts A/c Dr. To Debtors A/c a. Debit side of P & L A/c. b. Deduct from debtors on the assets side of B/S. 8. Provision for bad and doubtful debts P & L A/c Dr. To Provision for Bad Debts A/c a. Debit side of P & L A/c. b. Deduct from debtors on the assets side of B/S 9. Provision for discount on debtors P & L A/c Dr. To Provision for
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INTERPRETATION OF FINANCIAL STATEMENTS Ways of interpreting financial statements - Using individual items contained in financial statement. - Using ratios computed from items contained in Financial Statement (Ratio analysis) Reasons for interpreting accounts Accounts have to be analyzed and interpreted for the following logical points (1) Evaluation of the trading performance of a firm in order to have a measure of the quality of management running it. (2) Appraisal and monitoring
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AN EVALUATION OF ACCOUNTS RECEIVABLE MANAGEMENT BY MANUFACTURING FIRMS IN NAKURU MUNICIPALITY [pic] RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE IN BACHELOR OF COMMERCE (ACCOUNTING OPTION) SCHOOL OF BUSINESS KABARAK UNIVERSITY APRIL 2008 DECLARATION This research project is our original work and has not been presented for the award of any diploma or degree in any other university or college or any other institution of higher learning. Signature______________________________
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Accounting Basics f or S t u d e n t s Ba sic a ccou nting le ss ons an d qu es tio ns fo r high s cho ol a nd c ollege s tude nts By Michael Celender Accounting Basics for Students Copyright © 2010 Michael Celender. All Rights Reserved. No part of this publication may be reproduced or transmitted in any form or by any means‚ including but not limited to digital copying and printing‚ without the express written permission of the author. The author‚ Michael Celender‚ has made his best effort
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exempt Charity Turn over 2 1* Paula Redwood‚ a sole trader‚ prepared the following Trial Balance from her accounts on 30 April 2009. Rent General expenses Insurance Salaries Electricity Capital Motor expenses Bad debts Drawings Debtors Creditors Bank Stock 10% Loan Loan interest Carriage outwards Commission received Purchases Sales Purchases returns Sales returns Discounts allowed Discounts received Provision for doubtful debts Equipment Provision for depreciation
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Introduction 4 Main Body 4 Profitability ratios 4 Gross profit ratio 5 Net profit ratio 5 Return on Capital Employed 5 Liquidity ratios 5 Current ratio 6 Acid Test ratio 6 Working Capital Management Ratios 6 Stock Turnover Days 7 Debtor Collection Days 7 Creditor Payment Period 7 Comparison of the Financial Ratios 7 Conclusions and recommendations 9 References: 10 Introduction The main purpose of this report is to analyse importance of different types of financial
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Modernization Act outlines how financial institutions can treat consumer data in general. The Right to Financial Privacy Act may also apply. Case 20-9 To become a secured party‚ the creditor must obtain a security interest in the collateral of the debtor. Three requirements must be met for a creditor to have an enforceable security interest: Unless the creditor has possession of the collateral‚ there must be written or authenticated security agreement that clearly describes the collateral‚ there
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Budgets QUESTION 2: 30 marks; 20 minutes The topic of the question: Learning outcomes covered: LO1 Financial accounting AS4 Reconciliation and interpretation LO3 Managing resources AS5 Code of ethics AS6 Apply internal control and audit processes Debtors’ Reconciliation and Internal Control QUESTION 3: 50 marks; 30 minutes The topic of the question: Learning outcomes covered: LO2 Managerial accounting AS2 Production Cost Statement AS2 Income Statement AS2 Unit costs and break even LO3 Managing
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