Factors Affecting The Amount Of Accounts Receivables

Some of factors include the following:


  • Type/Nature of Business: Food business on cash basis whilst manufacturing business has more accounts receivable 
  • Level Of Sales: Aggressive top management will resort to relaxation or extension of credit terms to the customers to boost up the firms’ sales volume 
  • Credit And Collection Policy: Companies which has strict credit and collection policy will have lower accounts receivables than those which blatantly ignore good credit policy & procedure. 



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