Question

In: Finance

1. What collection monitoring measures do managers express a preference for in actual practice? 2. What...

1. What collection monitoring measures do managers express a preference for in actual practice?

2. What are the main differences faced by U.S. credit managers when selling on credit abroad?

Solutions

Expert Solution

1. The collection monitoring measures that managers have a preference for in actual practice is the measure based on aged trial balance (ATB). ATB is an accounts receivable schedule in which the customer sales invoices are segregated into different age buckets and each bucket is based on the number of days that a particular invoice is aged from its actual due date. This monitoring measure is preferred by many managers as it is provides several benefits – it identifies potential risk areas, it impacts cash flows and write offs of bad debts, and it helps in reducing costs and shoring up the profitability margins.

2. The main differences faced by US credit managers when selling on credit abroad include complications caused by exchange rate changes, arbitrariness of customer payment behavior, and the legal and economic environment. Credit histories and bank references may also be difficult to obtain. Managing the entire cash flow timeline and automating the credit process aid the credit manager in creating shareholder value from foreign credit sales.


Related Solutions

Practice question 3. If the actual support for presidential candidate A was 50%, what is the...
Practice question 3. If the actual support for presidential candidate A was 50%, what is the probability that the estimate obtained from a sample of 1,600 people would be less than 48%? In the Presidential Poll, 1,600 people were interviewed, and 720 of those interviewed said they supported candidate A. Determine the point estimate for A’s support. What is the mean error of this estimate? Specify a 99% confidence interval for the (actual) percentage of support. Specify a 99.9% confidence...
Explain in your own words what types of ratios or measures monitoring groups often use to...
Explain in your own words what types of ratios or measures monitoring groups often use to measure whether nonprofit organizations are operating properly, and in the best interests of donors. Then, in your own words, explain why you agree, or don’t agree, that these are useful and appropriate ways to judge nonprofit organizational performance
IRS Practice & Procedure What must happen before an assessment and collection of a deficiency can...
IRS Practice & Procedure What must happen before an assessment and collection of a deficiency can properly occur?
1. Discuss why all people do not have the same time preference for money 2. You...
1. Discuss why all people do not have the same time preference for money 2. You have finally graduated from college and are doing a little retirement planning. You plan to retire in 40 years. At that time you want to have a million dollars in savings. If you can receive 5% interest annually on a savings account, what is the fixed amount you have to save each month? How much would you have to save if the money was...
1. What types of resources could be allocated in a budget? 2. To ensure effective monitoring...
1. What types of resources could be allocated in a budget? 2. To ensure effective monitoring and reporting of budgets what do you need to do? 3. You will need to prepare financial reports for management. What do reports answer? Thank you
Choose any disease of your preference and answer what is the 1. Etiology 2. Pathophysiology and...
Choose any disease of your preference and answer what is the 1. Etiology 2. Pathophysiology and 3 treatment.
Do you believe managers should focus directly on the stock's actual market price or its intrinsic...
Do you believe managers should focus directly on the stock's actual market price or its intrinsic value, or are both important? Why?
Write the formula for the following ratios and what each ratio measures: Collection Period (also called...
Write the formula for the following ratios and what each ratio measures: Collection Period (also called “account receivable period”) Payables Period (also called “account payable period”) Operating Cycle Cash Conversion Cycle Financial Leverage (also called “equity multiplier” ) Debt-to-assets ratio Debt-to-equity ratio Times interest earned
1. What is a learning curve, and what does it measures? 2. What is experience curve...
1. What is a learning curve, and what does it measures? 2. What is experience curve and how does it relates to cost per unit? 3. What are the fundamental different between absorption and marginal costing? Who are the users of both? 4. If an unprofitable segment is eliminated, what will happen to the allocated fixed cost? 5. Under high-low method, the denominator of the equation that determines the slope is?
What accounting skills do managers value?
What accounting skills do managers value?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT