Business

Credit standard means some principles that increase the selling of product and services in debt. Credit standard of a firm may be aggressive or flexible,…

Trade Acceptance is a contractual agreement on a time draft or sight draft to pay the amount due at a particular date. The amounts to…

Seasonal Dating Under seasonal dating, the company considers an effective invoice date (rather than sales date) from when discounting period continue. This Term is used…

Conditional Sales Contract A conditional sale contract grants ownership of a piece of property to the buyer, but not lawful possession until the sale price…

Sight Draft A sight draft is a bill of exchange that is due and payable on demand. When delivery of the shipping documents acceptance of…

Collection Policy Collection policy refers to the procedure the firm follows to collect the past-due account. It is the procedures that a firm follows in…

A company’s policy on when its customers should pay for goods or services they have ordered a government’s policy at a particular time on how…

Baumol Model and its Assumption – Most firms try to minimize the sum of the cost of holding cash and the cost of converting marketable…

Marketable securities mean a short term financial assets that create interest for its holders and easily be converted into cash. They are securities or debts…

Cash management means optimal cash maintain in a business. If an excess is taken in a business, it is harmful because it does not grow…