Accounts payable, often known as trade payables, are short-term liabilities representing money owed by a business to its suppliers for goods and services received but not yet paid for.
Accounts Receivable, or Trade Receivables, refers to the outstanding invoices a company has or the money clients owe the company for products or services provided on credit.
The Accounts Receivable Turnover Ratio evaluates how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.
An Aging Report is a financial document that categorizes accounts receivable based on the length of time they have remained unpaid. This report aids in assessing the credit risk and the efficiency of the collections process.
An exploration of bad debt, its identification, impacts on financial statements, and strategies for management and mitigation in various financial sectors.
An in-depth exploration of Credit Administration, encompassing historical context, types, key events, mathematical models, importance, applicability, and more.
Credit Control involves policies and systems for regulating aggregate demand and ensuring timely payments for goods and services.
An organization that specializes in collecting outstanding debts, often preferring to be called commercial collection agencies, and charges a commission for doing so.
Debt servicing involves the regular and timely payments made towards covering both the interest and the principal amount of a debt. It is crucial for maintaining good credit standing and avoiding defaults.
The Debtor-Days Ratio measures the average number of days a company takes to collect payment from its debtors, reflecting the efficiency of its credit and collections processes.
A comprehensive guide to the process of ensuring that outstanding invoices are collected timely, covering historical context, key events, mathematical formulas, charts, importance, applicability, examples, and more.
A consolidation loan combines multiple loans or debts into a single loan, often with the aim of reducing the total monthly payments.
