ipl-logo

Receivable Management Literature Review

867 Words4 Pages

When the business organization sell the goods of service to its dealer or customer and does not receive trade Cash immediately or the firm trade in credit to customer, then it create receivable in the books of the firm. Receivable management can be defined as “DEBT OWNED BY THE FIRM” rising from product is selling under credit. It is one of the main components of the working capital, others are inventors and cash. And then it is also one of the current assets of the firm.

STATEMENT OF THE PROBLEMS:- “A study on the receivable management system” at JK TYRE LIMITED.

NEED OF THE STUDY:-
• It is one of the important components of the working capital in the business firm.
• Effective receivables management ensure in increase of profit in the …show more content…

• The study depends on the secondary data maintained by the company and all the results depend on the credibility of secondary data.
• To study management of receivables adopted only at JK TYRES LTD.

LITERATURE REVIEW:-
Literature review provides an overview of some of the existing literature with regard to the Receivable management. This literature review helps for the better understanding of both research topics and of the existing gap:

1. DELOOF,M(2003)
He says that relationship between account payable number of days in receivable inventories and operating income shows negative relation from his study by this he suggested the company that by reducing the accounts receivables days and inventories to create value for this stakeholders.
Sources:-Deloof ,M{2003} “ Does working capital management affects profitability of Belgian firms ?,Journal of business finance and accounting,30{3 and 4},573-587.
2. Padachi k {2006}:- At this study was on trends in working capital management and its impact on firm’s performance. He concludes by saying that there is a low profitability. When there is a huge research …show more content…

Before interest & tax, the study revealed that conversion cycle & inventory days had negative corrective with earnings & also while account payable days and accounts receivable days related to positively with earnings.

7. Jack & Matthew[1994] :-
The simplest means of recovering your accounts receivable to take active step. It stated in the aricle management of accounts receivable is helps to avoid the process entirely. 8. IN Ksenija (2013):- In republic of Serbia manage during recession times manage their accounts, he investigate this by the help of how public companies listed at the regulated market in ksenija 2013.are examined in the crisis period of 2008-2011.& a sample of 108 firm, is used.

9. Singh & Pandey (2008):-
In order to study the working capital component & its impact on profitability of hildalco industries limited for a period of 1990 to 2007. This is attempt by Singh & Pandey in 2008.
Receivable turnover ratio had statistical significant impact on the profitability of hildalco industries limited, this known by the help of study the

Show More
Related

  • Turnaround Courier Inc Case Study

    839 Words  | 4 Pages

    Summary of the Facts In TurnAround Couriers Inc. v. C.U.P.W. (2012), TurnAround Couriers Inc. is the Applicant, and The Canadian Union of Postal Workers is the Respondent. This case comment refers to a Federal Tribunal’s jurisdictional ability to hear a labour dispute concerning a courier company. TurnAround Couriers Inc. (“TurnAround”) is a Toronto-based “same-day” courier service that was established in 2002 and operated as a for-profit corporation. TurnAround’s primary business transactions included courier delivery by foot, bicycle and subway. Car delivery was also available but was outsourced through a separate company.

    Read More

  • Hcs/531 Week 4 Health Care Paper

    1417 Words  | 6 Pages

    When being placed in the role of a manager, it is important to understand the finances of the organization and how to read and understand the recording of finances. It is also important to understand how all the different parts of the records fit together to give us the knowledge of where the business is financially. Knowing also the different responsibility centers related to financial recording and how they function is important as a manager. Once a manager understands what and where items belong on a balance sheet, they will better understand the state that the business is in. “It provides you with a picture of the financial health of your practice or organization on a certain date.”

    Read More

  • Massachusetts Stove Company Case Study

    1064 Words  | 5 Pages

    Thus, they are in a position to cover any debt obligations that may come up quickly. Their inventory turnover has been relatively steady over the five years of data. In year 7 their inventory turnover reached 3.2 which means inventory is moving through to customers at an increased rate over the year which correlates with their increased sales. This statement is supported by the fact that the days inventory held for stoves has dropped over the past five years from 146 days in year 3 to 114 days in year 7. These reductions have allowed for the reduction of their days in accounts payable from 51 all the way down to 11.

    Read More

  • Quantitative Research: The Uniform Crime Reproting

    1219 Words  | 5 Pages

    Introduction Looking at the nightly news, many would believe violent crimes are at an all-time high. There are not just one on one violent crimes or gang violent crimes. There is court shootings, school shootings, church shootings, theater shootings, mall shootings, workplace shootings, and others. Where most one on one crime is committed with illegal guns, mass shootings are done with handguns purchased legally.

    Read More

  • Xacc/280 Week 4 Mini Case

    513 Words  | 3 Pages

    1) a. current liability: Money that a business owner must pay to a creditor within 12 months of the balance sheet date is a current liability. Ideally, short-term assets, such as cash and accounts receivable, should more than offset short-term liabilities, such as accounts payable, notes payable and payroll. If they do, the company 's short-term liquidity position is positive, which suggests the company will likely meet its cash-flow needs and remain a going concern. It is wise for a business owner to remain alert to his company 's current liabilities and the cash and assets that will be turned to cash within one year to meet these obligations. 1) b. Long-term liabilities are due more than a year after the balance sheet date.

    Read More

  • The Pros And Cons Of Inventory Accounting Methods

    979 Words  | 4 Pages

    The choice of inventory accounting methods, specifically for the case of FIFO and LIFO, has developed into a decision, which includes varying consequences and comes with specific implications and benefits, such as communicating private information with FIFO (Hughes, and Schwartz, 1988, p.42) or tax benefits for the choice of LIFO (Morse and Richardson, 1983, p.125). Every firm and manager has to face the decision of which accounting method to choose, and has to include several aspects into their decision making process and weigh the pros and cons in general. However, the empirical evidence (Frankel and Hsu, 2015, p.48) shows some controversies as to what inventory accounting methods firms decided to use in the past, even though the theory would

    Read More

  • Planet Air Travel Case Study

    2049 Words  | 9 Pages

    1.0 Introduction Due to the increasing pressure from external environment, there is a critical need for organizations to change for business continuity and sustainability (Kotter and Schlesinger, 2008). As a consequence of global financial crisis, Planet Air Travel has proposed a two-fold strategy which includes the merger with Air Nimble and partnership with Proxima Alliance. However, their proposal was met with a combination of anger and approval by the union. The union’s anger may be triggered by several factors such as PAT’s poor leadership style, lack of communication and participation during change and the lack of understanding of the employees’ psychological reactions.

    Read More

  • Inventory Valuation Analysis

    1594 Words  | 7 Pages

     Historical inventory “cost” is used in applying the lower of cost or net realizable value over the entire period that the inventory is held.  Write-downs are reversed as selling prices rise. Over the entire period of an enterprise, the amount of expense and profit are the same in the income statement on US GAAP and IFRS. However, the inventory and cost of goods sold balances can vary dramatically in any given period.

    Read More

  • Johnson International Corporation: Case Analysis: Johnson International Corporation

    800 Words  | 4 Pages

    Here 70% of our business is done with military so in military terms logistics means the organization of moving, housing and supplying troops and equipment’s. No doubt logistics is an important activity as there is a process for doing a work and there must be proper coordination and cooperation. Lack of proper coordination means, high chance of getting errors in work. This case analysis focus on providing the recommendations to the top management to make sure their activities are going smoothly in the market and they can be ahead from their competitors in this competitive world. In easy words, the organization wants to improve their delivery to their customers.

    Read More

  • Personnel Budgeting In Business

    1639 Words  | 7 Pages

    For example, private or public administration’s undertaking on personnel budgeting. Further, the typical questions on the theme of execution of budget spending are regarding control stages (sensibility of financial information), exceptional procedures (misuse related), creative accounting. Moreover, on this subject, reconciliation of banking data, coverage difference, arrears, float, payment delay, consolidation of funds, bill management, and so on serve up to the mark. Controversies: Personnel

    Read More

  • Tesco Accounting Report

    1656 Words  | 7 Pages

    The paper will calculate the financial ratios of company that will be interpreted with the implications of ratios. Moreover, the paper will describe the indicators of fraudulent reporting. Discussion Purpose of Income Statement It is also called profit and loss statement or income or expense statement. The main purpose of income statement is to indicate managers and investors whether the organisation was cost-effective

    Read More

  • Ratio Analysis Of Nike

    4014 Words  | 17 Pages

    A problem with the current ratio is that it accounts for inventory, which is not as liquid as other current asset accounts, and may lead to a disingenuous analysis. Another problem arises with this ratio because it accounts for the receivables account, which may overvalue the ratio, especially if the business

    Read More

  • Pan Europa Case Study

    1078 Words  | 5 Pages

    To begin with, the company must channelize its investment in those projects that will assist the growth in the revenue figures and net income. It is also important for the company not take any additional debt and accept projects within their capital budget as the banks have already signaled red warning for unsustainable debt-equity position of the company. Analyzing the past performance of the company, we found that

    Read More

  • Intercontinental Hotel Group Case Study

    1617 Words  | 7 Pages

    The literature review stated that all the good credit companies faced problem in obtaining finance from banks in the period of financial crisis due to which many of their projects failed. The organisations did not have enough money for financing operations of the organisation and the newcomers in the hospitality sector were not able to raise finance to start their new business due to credit crunch (Tirados & María,

    Read More

  • Importance Of Accounting Information System

    925 Words  | 4 Pages

    The main important purpose of the accounting information system is to promote the activity of the enterprise and to form a reliable and real picture of it. In addition, the accounting information system promotes the activity of the enterprise effectively by preparing up-to-date information statements, providing as much information as possible so that the data should be understandable all users not only for the experts(bookkeepers) and tracking liquidity. Nowadays accounting software is a programme which makes accounting work processes easier and faster and which makes it possible to meet the information demand of the management. It also can support the accountants’ work, helping to compile reports by in helping to compile reports by recording and processing the events concerning the

    Read More

More about Receivable Management Literature Review

Open Document