Define accounts receivable are sometimes not collected, Financial Management

Assignment Help:

Accounts receivable are sometimes not collected. Why do companies extend trade credit when they could insist on cash for all sales?

Extending trade credit almost all the time leads to more sales. If the incremental cashflows, involving the investment in accounts receivable give a positive NPV, the decision to extend trade credit would raise the value of the firm.

Related Discussions:- Define accounts receivable are sometimes not collected

What is post-acquisition integration, Post-acquisition integration In o...

Post-acquisition integration In order to have constructive discussions between organisations, it's strongly recommended that all participants in process adopt a set of ground r

Explain the divestment of company re-organisations, Divestment of company r...

Divestment of company re-organisations Adisinvestment or divestment is selling part of the business or subsidiary to another third party. Reasons and features for divestme

Risk return relationship, RISK RETURN RELATIONSHIP A business operates...

RISK RETURN RELATIONSHIP A business operates in a market environment, which is not within its control. It is exposed to several dangers from the internal with external sources

State about the audit plan contents, State about the Audit plan contents ...

State about the Audit plan contents 1. Report requirements and terms of reference. 2. A review of business and financial position, reviewing why changes had occurred in curr

13 basic ratios, What its the net income? Total current assets, plant and e...

What its the net income? Total current assets, plant and equipment, net plant and equipment, our net account receivable?

Which banking regulators use in supervising banks, Question 1: In the f...

Question 1: In the financial system, the capital markets consist of the Bond and the Equities Market. Develop this statement. Question 2: (a) Discuss why banking regula

Reinvestment income, Other than zero coupon bonds, all fixed in...

Other than zero coupon bonds, all fixed income securities make periodic payments in the form of coupon interest. This coupon interest can be rei

Define assumption behind experience approach to forecasting, What is the pr...

What is the primary assumption behind the experience approach to forecasting? The experience approach to forecasting is relies on the assumption that things will happen a fixed

Define conservative type of working capital financing plan, What is the mos...

What is the most conservative type of working capital financing plan a company could implement? Explain. An all equity capital structure would be mainly conservative type of wor

Explain total assets equal the sum of total liabilities, Why do total asset...

Why do total assets equal the sum of total liabilities and equity? Explain. Assets = Liabilities + Equity Assets are the items of value that a business owns. Liabilities ar

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages