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Cost of Preference Shares

Cost of Preference Shares The computation of the cost of preference share the cost of debt. The stipulate coupon rate of dividend on  reference   hares, like the interest on debt, constitutes the basis for the calculation of the cost. of preference shares. However,...

RECEIVABLES MANAGEMENT

RECEIVABLES MANAGEMENT INTRODUCTION In the preceding Chapter, which was devoted to an in-depth examination of one of the most important components of current assets, that is, cash, it was observed that a basic strategy to reduce the operating cash requirement of a...

Type of Collection Efforts

Type of Collection Efforts The second aspect of collection policies relates to the steps that should he taken to collect overdues from the customers. A well-established ·collection policy should have as to the sequence of collection efforts. After the credit period is...

COLLECTION POLICIES

COLLECTION POLICIES The third area involved in the accounts receivable management is collection policies. They refer to the procedures followed to collect accounts receivable when, after the expiry of the credit period, they become due. These policies cover two...

Cash Discount

Cash Discount "The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions. Financial statements...

CREDIT TERMS

CREDIT TERMS The area in accounts receivable management the credit terms. After the credit standards have been established and the creditworthiness of the customers has been management of a fine must determine the terms and conditions OR which trade credit will made...