Finance

Purpose of Receivable Management

Purpose of Receivable Management

Receivables also termed as trade credit or debtors are components of current assets. When a firm sells its product in credit, account receivables are created. It is shown on its balance sheet as an asset. It is one of a series of accounts dealing with the billing of a customer for goods and servi.....

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Introduction to Receivable Management

Introduction to Receivable Management

Introduction to Receivable Management Receivables also termed as trade credit or debtors are components of current assets. When a firm sells its product in credit, account receivables are created. It represents money owed to a business by its clients (customers). It is shown on its balance sheet .....

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Responsibilities of the Credit Manager

Responsibilities of the Credit Manager

Responsibilities of the Credit Manager The person who gives the final approval for loan or credit is known as the credit manager. Investment in account receivable of any firm depends on how much it sells in credit and how long it takes for the collection of receivables. The credit managers give t.....

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Costs of Maintaining Receivables and their Calculation

Costs of Maintaining Receivables and their Calculation

Receivables represent the amounts owed to the company as a result of sales of goods and services in the normal course of business. The size of investment in receivables is influenced by a number of factors. Among them two factors, the volume of credit sales, and the average length of time between.....

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What are the Determinants of Investment in Receivables?

What are the Determinants of Investment in Receivables?

Determinants of Investment in Receivables – Receivables represent the amounts owed to the company as a result of sales of goods and services in the normal course of business.  The size of investment in receivables is influenced by a number of factors. Among them two factors, the volume of .....

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Concept of Time Value of Money

Concept of Time Value of Money

The concept of Time Value of Money The concept of tome value of money suggests that the money received at a different point of time has a different value. It is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning ca.....

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Significance of Time Value of Money

Significance of Time Value of Money

The significance of Time Value of Money – The time value of money is the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. Time value of money is a widely used concept in the literature of finance. Financial.....

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Concept of Dividend Policy

Concept of Dividend Policy

Concept of Dividend Policy Dividend policy is the policy which concerns quantum of profits to be distributed by way of dividend. Dividend refers to the portion of net income paid out to shareholders. It is paid in cash and/or stock for making an investment and bearing risk. Dividend decision of t.....

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Dividend Payment Procedures of a Company

Dividend Payment Procedures of a Company

Dividend Payment Procedures of a Company A dividend is a distribution of a percentage of a firm’s earnings, decided by the board of owners, to a class of its investors. Dividends can always be issued as funds payments, as gives of stock, or other property. The dividend payment procedures of a f.....

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Factors that affecting Dividend Policy of a company

Factors that affecting Dividend Policy of a company

Factors that affecting Dividend Policy of a company Dividend Policy is a financial decision that refers to the proportion of the firm’s earnings to be paid out to the shareholders. A firm’s dividend policy is influenced by large numbers of factors. The goal of the policy is to aim for s.....

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Concept of Stock Splits and its Value

Concept of Stock Splits and its Value

The concept of Stock Splits and its Value to Shareholders A stock split is similar to a stock dividend in an economic sense. It is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. When a company announces stock splits, it.....

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Concept of Reverse Stock Splits

Concept of Reverse Stock Splits

The concept of Reverse Stock Splits When a company completes a reverse stock split, each outstanding share of the company is converted into a fraction of a share. The company may want to reduce the number of share outstanding if its share price falls substantially. The number of shares is reduced.....

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