1) To make Payment According to Payment Schedule:- Firm needs cash to meet its routine expenses including wages, salary, taxes etc. Following are main advantages…

Inventories constitutes the most significant part of current assets of large majority of companies in India. On an average, inventories are approximately 60% of current…

A Company may hold the inventory with the various motives as stated below: 1) Transaction Motive: The company may be required to hold the inventory…

Through the efficient Management of Inventory of the wealth of owners will be maximised. To reduce the requirement of cash in business, inventory turnover should…

A.B.C. analysis is a selective technique of controlling different items of inventory. In actual practice, thousands of items are included in business as inventories. But…

Fixation of various inventory levels facilitates initiating of proper action in respect of the movement of various materials in time so that the various materials…

Include bills payable, notes payable and miscellaneous accruals. Net working capital is the excess of current assets over current liabilities here. Current assets are those…

Inventory turnover indicates the ratio of materials consumed to the average inventory held. It is calculated as below: Value of Material Consumed _______________________ Average inventory…

“Receivables are asset accounts representing amounts owned to a firm as a result of sale of goods or services in ordinary course of business.” Receivables…

There a 3 purposes of investing or maintaining Receivables. (1) Growth in Sales:- In comparison to cash sales, firm can make high sales by selling…