How to set/ determine Credit limit of a customer in
Manufacturing and Trading Business?
Answer Posted / sat
We could determiine the credit limit by analysing the credit worthiness of the customer (i.e debt equity analysis) by analysing the debt equity position is he/she is viable assets to met his debt. Based on that we could fix credit limit. ( debt/equity should 2:1)
| Is This Answer Correct ? | 4 Yes | 2 No |
Post New Answer View All Answers
why only 6 months interest is charged on drawings
we had company we provide work others they deducted tds how to pass entries in my company please tell me
A Lorry driver damaged shed shutter and we deduct 2000/- from his freight amount now what is the head for the Deducted amount?
if at the end of the year cash book is showing debit balance whether it is meant that cash is not deposited after deducting expenses in bank and it is in hand and we should deposit in next year
Explain me bills receivable?
Describe the advantages and disadvantages of the different accounting packages/systems you have used recently in your accountant jobs
What is the TDS rate in Maharastra, Tamil Nadu, Karnakata,Odisha & West Bengal. What is about Profession Tax.
cash with drawn from bank with issuing self check vide ch no.123456 how to enter in sap. please send answer anyone this is very helpful to me
how sales invoices adjusted against advance received from Debtor?
Define offset accounting?
Explain fictitious assets?
Who created snapit accounting?
How to treat company managers personal expenses met by company if he is not taking salary from company and in future salary will be payable after deducting all personal expenses (salary amt will be decided only at paying year). pass journal entries
Explain the meaning of long-term notes payable is or long term liabilities?
what do you maen by Expected rate of return ? Is there any formula for expected rate of return? what is systematic & unsystematic risk ? how to calculate both the risk?