ACCOUNT RECEIVABLE MANAGEMENT

ACCOUNT RECEIVABLE MANAGEMENT

Definition:

The money received by the companies from its customer in future against the credit transection is called account receivable.

Credit Terms:

Credit Period:
The maximum time period given by the company to its custormer against credit transection.

Discount Period:
The time period given by the company on which its offer discounts for early payment.

Discount:

The percentage amount wave-off by the company to its customer for early payment is called discount.

The company provide the products on credit at the start of the seasons and payments are received at the end of the seasons.

Analysis of Credit Applicant

1) Collecting Information
a) Balance Sheet/Income statement
In which company will check the assets proft and loss

b) Good will

Ask the people about the applicant its past payment nature means it pay amount how and when. what types of matter occure for receiving point of view.

c) Trade Relations
what types of relation the applicant company with other company and credit relations.

Rating Information:
To check the company rating in the industry where exist.

2) Analysis of Information:
positive point of view
negative point of view

3) Credit Decision
if postive points are more will give the loan other wise rejected.


FINANCIAL MANAGEMENT
DECISION AREA OF FINANCIAL MANAGEMENT
AGENCY PROBLEM
TYPES OF BUSINESS
FINANCIAL SYSTEM
FINANCIAL INTERMEDIARIES
TYPES OF FINANCIAL MARKETS
TIME VALUE OF MONEY
EXAMPLES AND FORMULA TIME VALUE OF MONEY
CASH FLOW,SUM,SERIES OF CASH, ANNUITY AND MIX STREAM
ANNUITY TYPES AND FORMULA
AMORTIZATION SCHEDULE OR TABLE WITH EXAMPLE
EFFECTIVE INTEREST RATE WITH EXAMPLE
VALUATION OF LONG TERM SECURITIES (BONDS)
TYPES OF BONDS
BONDS FORMULA,ZERO COUPON PERPETUAL
VALUATION OF LONG TERM SECURITIES (SHARE)
CASH AND MARKETABLE SECURITIES MANAGEMENT
MANAGING CASH INFLOW AND OUTFLOW
SECURITIES MANAGEMENT
SHORT TERM FINANCING
SPONTANEOUS LABILITIES
NEGOTIATED FINANCE
CAPITAL BUDGETING
CAPITAL BUDGETING TECHNIQUE
NET PRESENT VALUE TECHNIQUE
INTERNAL RATE OF RETURN TECHNIQUE
ACCOUNT RECEIVABLE MANAGEMENT
INVENTORY MANAGEMENT
FORCASTING

MBA NOTES FINANCIAL MANAGEMENT