What is a credit limit? How does it impact credit utilization (debit-credit ratio) and why is that important?

Q: How do you compute the receivables turnover ratio?

A: Receivables turnover (RT) ratio: this is an accounting measure which shows the effectiveness of a…

Q: What is the difference between account receivable and account payable ?

A: Diffecrence between the accounts receivable an accounts payable are as follows:

Q: What is the difference between Accounts Payable and Accounts Receivable? Explain each in generic…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: What is easy-access credit?

A: Introduction: The ability to borrow cash or obtain goods or services with expectation of repaying it…

Q: Explain the other sources of credit

A: The term credit can be defined as the agreement between two parties involving a borrower and a…

Q: Why is it important to set a credit limit?

A: Solution:- Given, Credit Limit :- The term credit limit refers to the maximum amount of credit a…

Q: What is the net credit sales?

A: As per the information given,  Net credit sale = Closing balance of Trade and other receivables -…

Q: What would the credit terms of “2/10, n/EOM” mean?

A:

Q: Which is better to have? Accounts receivable or notes receivable? And why?

A: Accounting is the process of recording financial transactions that are material to the business. It…

Q: What's the difference between accounts payable and receivable?

A: Accounts Payable is the current liability for the business and Accounts Receivable is a current…

Q: What is the difference between Notes Payable and Accounts Payable?

A: Introduction: Accounts payable  is an account within the general ledger that represents a company's…

Q: Describe the procedure for evaluating a change in credit policyusing the income statement approach.

A: Credit policy: The detailed guidelines of the credit extended to the company which includes factors…

Q: w do yo

A: Introduction : A credit history can be understood as a history of a debtor's timely debt repayments.…

Q: What is a sale on credit and why it is needed? Give three examples?

A: Sale on Credit: A sale on credit is revenue earned by a company when it sells goods and allows the…

Q: What is the difference between a nominal account and a real account?

A: There are three types of accounts in financial statements, Real Account Personal Account Nominal…

Q: What is the difference between your credit report and your credit score? What is a good credit…

A: Introduction to Credit report A credit report is prepared by a credit bureau and is a breakdown of a…

Q: What is the difference between a nominal account and a real account?

A: Nominal Account: These are the accounts that pertain to Incomes (or Revenues) and Expenses. Thus,…

Q: What are some of the assets and liabilities associated with credit cards?

A: Introduction: A credit card can be defined as a small piece of card which is offered by banks or any…

Q: receivables turnover ratio

A: Receivable turnover ratio is an important accounting metric used to evaluate the performance of…

Q: What does the accounts receivable turnover ratio measure, and how is it calculated?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: What are the four elements of a credit policy? Briefly explain.

A: Following are the four elements of a credit policy: Credit standards: Consider potential clients by…

Q: Credit and collection management is also known as RCM. What is RCM and its meaning

A: credit and collection management is that term mostly used in the accounting for goods and services…

Q: Difference between a debit and a credit.

A: Debit and credit are the two aspects of a transaction and a ledger account. The short form used for…

Q: Define each of the following terms: l. Stretching accounts payable; free trade credit; costly trade…

A: Trade credit is the outstanding due arising from sales or purchases made on credit. Accounts Payable…

Q: What are the differences between Notes Payable and Accounts Payable?

A: Explain the difference between a note payable and an account payable as follows:Notes payable: A…

Q: Hi why is the net income on the credit side and not debit?

A: Net Income - Net Income is the result of the revenue over expense incurred by the company. It will…

Q: What is the difference between accounts receivable and notes receivable?

A: Note receivable is the instrument that represents the amounts of money borrowed or receivables…

Q: What is the difference, definition, examples between account receivables and fees earned?

A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…

Q: Define the term Accounts Receivable Turnover?

A: Accounts receivable turnover: This is the ratio which analyzes the number of times accounts…

Q: What is noncommited and committed line of credit?

A:

Q: What are the five Cs of credit? How do these serve as a yardstick for creditevaluation?

A: The “5 Cs of credit” is a system used to estimate the creditworthiness of the borrowers. The 5 Cs…

Q: What is the difference between Accounts Receivable andRevenue?

A: Accounts receivables: Accounts receivables refers to the debtors that arise in case of credit sales…

Q: what is credit transactions?

A: credit transactions:-    Credit transaction is a transaction of which the repayment of money loaned…

Q: How credit ratings companies evaluate and determine credit for consumers?

A: Credit rating is referred as the opinion derived from the credit agency which determines the ability…

Q: Choose one as the most important Cs of Credit and explain why?

A: In order to determine the creditworthiness of the borrower, a lender conducts a thorough analysis of…

Q: How to compute the account receivable Turnover without the net credit sales nor the average account…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: Which method, the percentage-of-receivables method or the percentage-of-credit-sales method, is…

A:

Q: What is trade-off credit and collection policies and its compositions?

A: A external financing is an agreement agreement understanding between partners that facilitates the…

Q: How to compute net credit sales on a balance sheet

A: solution : How to compute net credit sales on a balance sheet? Net credit sales is the amount of…

Q: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.