Page 398 - F1 Integrated Workbook STUDENT 2018
P. 398
Chapter 24
For accounts receivable, the entity's credit policy will be influenced by
demand for products
competitors' terms
risk of irrecoverable debts
financing costs
costs of credit control
Receivables management has four key aspects:
Assessing creditworthiness of customers.
Setting credit limits.
Invoicing promptly and collecting overdue debts.
Monitoring the credit system.
This is a useful structure to adopt for examination questions that ask about the
management of receivables.
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