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  • Receivable Management

    Transféré par

    Amandeep Singh Manku
    64 vues4 pages
    The document discusses two approaches to evaluating credit policies: the total approach evaluates all aspects of a company's credit policies together, while the incremental approach evaluates potential changes to credit policies individually and their incremental impact. The total approach involves preparing statements showing the estimated amount of sales, estimated collection period, carrying cost of receivables, and expected losses from bad debts under the proposed credit policies. The incremental approach involves identifying current policies, proposed policy changes, and estimating the incremental impact of each change on variables like sales, collection period, costs, and losses.

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    financial magt

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    The document discusses two approaches to evaluating credit policies: the total approach evaluates all aspects of a company's credit policies together, while the incremental approach evaluates potential changes to credit policies individually and their incremental impact. The total approach involves preparing statements showing the estimated amount of sales, estimated collection period, carrying cost of receivables, and expected losses from bad debts under the proposed credit policies. The incremental approach involves identifying current policies, proposed policy changes, and estimating the incremental impact of each change on variables like sales, collection period, costs, and losses.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    64 vues4 pages

    Receivable Management

    Transféré par

    Amandeep Singh Manku
    The document discusses two approaches to evaluating credit policies: the total approach evaluates all aspects of a company's credit policies together, while the incremental approach evaluates potential changes to credit policies individually and their incremental impact. The total approach involves preparing statements showing the estimated amount of sales, estimated collection period, carrying cost of receivables, and expected losses from bad debts under the proposed credit policies. The incremental approach involves identifying current policies, proposed policy changes, and estimating the incremental impact of each change on variables like sales, collection period, costs, and losses.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 4

    Receivable Management

    APPROACHES TO EVALUATION OF CREDIT POLICIES


    There are basically two methods of evaluating the credit policies to be adopted by a Company —
    Total Approach and Incremental Approach. The formats for the two approaches are given as under:

    Statement showing the Evaluation of Credit Policies (based on Total Approach)

    1
    Receivable Management

    2
    Receivable Management

    3
    Receivable Management

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