Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Dangers of over-reliance on trade credit
In effect for the reason that trade credit represents temporary borrowing from suppliers until invoices are paid it becomes an important method of financing the firm's investment in current assets. Firms perhaps tempted to view trade payables as a cheap source of finance especially as in the UK at least it is currently interest-free. Having a receivables' collection period smaller than the trade collection period may be taken as a sign of efficient working capital management.
Nevertheless trade credit is not free. First by impediment payment of accounts due the company may be passing up valuable discounts thus effectively increasing the cost of goods sold. Second extreme delay in the settlement of invoices can undermine the existence of the business in a number of ways. Existing suppliers perhaps unwilling to extend more credit until existing accounts are settled they may begin to attach a lower priority to future orders placed they may raise prices in the future or simply not supply at all. Additionally if the firm acquires a reputation among the business community as a bad payer its relationships with other suppliers may be soured.
explain the terms recording,classifying,summarizing and communicating
X co has a bond outstanding that carries a coupon rate of 90% and current maturity is 15yrs and the call price is Rs 1060 per bond(25000 bonds Rs 1000 face amount)9% bond had origi
Five years ago Ramon Millan quit his job as an associate at a large law firm and opened a burger joint in Malibu. His innovative use of aged blue cheeses and specialty sauces resul
Let us assume that you deposit Rs.1000 in a bank that pays 10 percent interest compounded yearly for a period of 3 years. The deposit will grow as given details: Fir
Baruch Lev, who is a professor of accounting at New York University and a globally known academic for his research on financial reporting for intangibles, is that the economy has c
how to prepare the accounts when goodwill is not to be maintained in the books
Example of Short-term Solvency Current Ratio = Current Assets / Current Liabilities = 5.38
What are some examples of co branded foods? is cool ranch doritos one?
Many hospitals are classified as not-for-profit (NFP). The presentation of for-profit (FP) financial statements differs in several respects from NFP accounting. You will probably w
how do i write an assignment about financial decision making
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd