Working with a company that is able to pay its bills is important. The Balance Sheet is a great place to start when evaluating a company's creditworthiness. Which Balance Sheet accounts would you use to perform your evaluation? How would you use the Balance Sheet to determine creditworthiness?

Q: What is a sensible credit period? Should the credit period for your company's sales vary depending…

A: Credit period is the days that a customer is allowed to wait before paying the invoice. There is no…

Q: What the responsibilities of the firm of accountants as far as money laundary is concern.

A: Money laundering is the process of obscuring the source of funds earned through illegal activities…

Q: What are industry benchmarks, and why are they used in the credit evaluation process?

A: The answer for the question on the industry benchmarks used in the credit evaluation process is…

Q: What do I need to do to build a solid credit history and how can I maintain it?

A: credit score history is a method to judge a customer's capability of paying his credit amount taken…

Q: . is modifying the firm's credit collection policy with its customers Select one: a.Financial…

A: Credit Collection Period represents the average time taken to collect trade debts by the firm from…

Q: What methods can be used by small businesses to speed the collection ofmoney that is owed to them?

A: There are a number of methods that can be used by small businesses to speed the collection of money.

Q: what makes credit important to the business?

A: Credit can be the amount of money a business can borrow or can be termed as the ability of that…

Q: What is the impact of the credit and collection functions on the other parts of a business (or on…

A: Credit refers to the debt and loan that is provided by the company to others at a certain rate of…

Q: A profit-seeking commercial company that deals with money and credit?

A: The question is based on concept of nature of primary business. Primary nature of business describes…

Q: Studying AIS helps students understand business processes from an accounting perspective. Which of…

A: AIS Accounting information systems involves collection, storage and processing of finance and…

Q: indicators that a company is doing an effective job at managing accounts receivable

A: Accounts receivable is the earnings of the company for which the payment has not been made by the…

Q: do we need to check   the credit worthiness of credit customers before granting their credit…

A: Giving credit to the business and customers is main earning sources for banks but they need to take…

Q: Employees need the financial analysis to know if

A: Financial analysis refers to the process of evaluating the business operations, performance and…

Q: Is granting credit to customers good? And as a future business owner how would you handle or manage…

A: Explanation to Credit When products are sold to customers on credit and customers agree to pay the…

Q: Explain how the components of the balance sheet of a commercial Bank can be used for decision…

A: The balance sheet of a business bank gives an image of its working. It is an explanation that shows…

Q: Please answer quickly: How do the objectives of evaluating financial condition differ between…

A: A creditor is a financial expert who evaluates the creditworthiness of assets, individuals, and…

Q: The goal of management accounting is to: a. Help bankers to make lending decisions b. Help the…

A: Management accounting - management accounting helps in making decisions of the business and helps in…

Q: Effective credit management involves establishing credit standards for extending credit to…

A: a) How a company handles its credit accounts, including methods of invoicing and collecting past-due…

Q: During a formal relationship review of a company's bank, the company should discuss all of the…

A: A formal relationship review of a company’s bank can discuss the following points:Fees and error…

Q: Which one of the following best defines the term credit scoring?  A.  Categorizing customers…

A: The statistical tool used to analyze the performance by lenders and financial institutions so as to…

Q: What have you learnt in a course relating to financial accounting?

A: Answer: 1) Financial Accounting: Financial accounting is the method of recording, summarizing and…

Q: The customers of the company would like to know its credit worthiness and the terms of payment. O…

A: Accounting concept states the basic principles, assumptions as well as rules that work on the…

Q: When selecting a financial institution, you should consider: (select all that apply) fees for…

A: Financial institutions are the entities providing financial services in the nature of accepting…

Q: Will you hire an accountant to prepare financial state-ments for your firm?

A: The financial statements of a firm are prepared to calculate the financial position f the firm at…

Q: • How an Investment Bank helps • How an Investment Bank helps Emerging trends in financial services…

A: Investment  Bank provides services related to arranging funds or acting as an advisory-based…

Q: of the credit policy to (a) the credit department and (b) customers.

A: Credit standards are the set of standards that a company, bank or other financial institution used…

Q: How can we check the Financial Status for Businesses?

A: It is very important for the businessman to check the financial status of the business time to time…

Q: Why would an organization want to know what there Net Credit Position is?

A: Net Credit positions is difference between account receivables and account payable. If the…

Q: Credit selection involves the application of techniques to determine which customers should receive…

A: Credit selection refers to the decision to whether the company should extend the period or the…

Q: Why do you think businesses extend credit to customers thereby creating accounts receivable?

A: Account receivable means where goods has been sold on credit and amount has not been received.…

Q: Evaluating features of an effective accounting information system In Vogue, a T-shirt business, is…

A: Accounting information system: It is a process which collects data, processes the same into…

Q: A credit bureau, AKA credit agencies, are companies that collect credit information about…

A: A credit bureau can be defined as a company that gathers and researches information about…

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: How do each of the items in a firm’s credit policy—defined to include the credit period, the…

A: Strong credit policy indicates the effectiveness of credit management. The four components of credit…

Q: Describe the advantages and disadvantages of factoring receivables for your business.

A: Factoring receivable define as the arrangement through which an entity can sell or factor their…

Q: Effective credit management involves establishing credit standards for extending credit to…

A: Company provide credit to customers and discount to customers to increase sales.

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: Effective credit management involves establishing credit standards for extending credit to…

A: Accounts receivable: When the seller sold the goods to the buyer on a credit basis of the specified…

Q: For an investment bank, back office refers to a department which directly generate revenue for the…

A: >Investment banks are the institution that, on behalf of their clients, create products, do…

Q: What is the positive and negative impact of the credit and collection functions on the other parts…

A: Credit refers to the debt and loan that is provided by the company to others at a certain rate of…