MC9901C03 Lecture Notes - Lecture 1: Cash Flow, Customer Satisfaction, Regulate (Song)

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anujacob091

2 Mar 2022

School

Mahatma Gandhi University - Kerala

Department

Finance

Course

MC9901C03

Professor

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Document Summary

Receivable management or managing accounts receivables means collecting the payments due for sales promptly. When we sell any services, products, or solutions to our clients or customers, they owe us the money. Receivable management is a process of managing the account receivables within a business organization. Account receivables simply mean credit extended by the company to its customers and are treated as liquid assets. It involves taking decisions regarding the investment to be made in trade debtors by the organization. Deciding on the proper amount to be lent by the company to its customers in the form of credit sales is quite important. It affects the overall cash availability for undertaking various operations. Receivable management business ensures that a sufficient amount of cash is always maintained within the business so that operations can continue uninterrupted. It helps in deciding the optimum proportion of credit sales.

Related Questions

6-30 (Objective 6-8) The following are various managementassertions (a. through m.) related to sales and accountsreceivable.

Management Assertion

Receivables are appropriately classified as to trade and otherreceivables in the financial statements and are clearlydescribed.
Sales transactions have been recorded in the proper period.
Accounts receivable are recorded at the correct amounts.
Sales transactions have been recorded in the appropriateaccounts.
All required disclosures about sales and receivables have beenmade.
All accounts receivable have been recorded.
Disclosures related to receivables are at the correctamounts.
Sales transactions have been recorded at the correctamounts.
Recorded accounts receivable exist.
Disclosures related to sales and receivables relate to theentity.
Recorded sales transactions have occurred.
There are no liens or other restrictions on accountsreceivable.
All sales transactions have been recorded.

Please answer these questions only.

Explain the differences among management assertions aboutclasses of transactions and events, management assertions aboutaccount balances, and management assertions about presentation anddisclosure.
For each assertion, indicate whether it is an assertion aboutclasses of transactions and events, an assertion about accountbalances, or an assertion about presentation and disclosure.
Indicate the name of the assertion made by management.

indigowildebeest330

What is Amazon's cash management policy, inventory management and accounts receivables management?

apricotmallard604

P3â16 Accounts receivable management An evaluation of the books of Blair Supply, which
follows, gives the end-of-year accounts receivable balance, which is believed to consist
of amounts originating in the months indicated. The company had annual sales
of $2.4 million. The firm extends 30-day credit terms.

Month of origin Accounts receivable
July $ 3,875
August 2,000
September 34,025
October 15,100
November 52,000
December 193,000
Year-end accounts receivable $300,000

a. Use the year-end total to evaluate the firmâs collection system.
b. If 70% of the firmâs sales occur between July and December, would this information
affect the validity of your conclusion in part a? Explain.


Average Collection Period = accounts receivable/average sales per day

MC9901C03 Lecture Notes - Lecture 1: Cash Flow, Customer Satisfaction, Regulate (Song)

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