What does the firm’s cash conversion cycle represent? What is the financial manager’s goal with regard to it? Why?
Answer to relevant QuestionsHow is credit scoring used in the credit selection process? In what types of situations is it most useful? Why should a firm actively monitor the accounts receivable of its credit customers? How does each of the following credit monitoring techniques work: (a) Average collection period, (b) Aging of accounts receivable, and (c) ...Why do a firms regular credit terms typically con-form to its industry’s standards? On what basis other than credit terms should the firm compete? What are some of the recent developments in the accounts payable and disbursements area? What role does new technology play in fraud prevention in disbursements? How can the cash manager model the benefits and costs of various funds transfer mechanisms to assess their economics? How can this analysis be used to determine the minimum transfer amount?
Post your question