Wikiaccounting

Financial Controller: Overview, Qualification, Role, and Responsibilities

Overview: Financial Controller is generally referred to as the high-level executive person who oversees the Finance Department and other senior executives, including Finance Director or sometimes CFO, Finance Manager, and other executives. There are many roles and responsibilities that the Financial Controller has, but here is the main important task they normally perform: Oversee financial …

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Financial Management: Overview and Role and Responsibilities

Financial Accounting

Financial management deals with the ways in which an organization can raise funds for the various projects, allocation of those funds in the most productive and efficient way, how to exercise control over those funds, and how to distribute the returns of those funds to the various stakeholders. It generally deals with planning, controlling, organizing, …

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What is a Factoring Company? And How Does It Work?

Factoring Account Receivable

Factoring arrangement In a factoring arrangement, the business sells its right to receive the cash in the future to a factoring company. The factoring company pays the invoice amount to the business and the right to receive the cash from customers is transferred to them. The practice of factoring is carried out to meet the …

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What is Accounts Receivable Collection Period? (Definition, Formula, and Example)

Account Receivable, Financial Accounting

Definition: The accounts receivable collection period sometime called the day’s sales outstanding simply means the period (number of days) in which credit sales are collected from customers. This ratio is very important for management to assess the collection performance as well as credit sales assessments. The account receivable collection period measures the average number of …

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Quick Ratio: (Definition, Formula, Example, and More)

Financial Ratios, Quick ratio

Definition: Quick Ratio is one of the Liquidity Ratios used to measure the company’s liquidity position, project, investment center, or profit center. The special characteristic of this ratio from the other Liquidity Ratios is that Quick Ratio taking account only cash and cash equivalent items for calculation and interpretation. It disregards other items which might not quickly convert …

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What are the Benefits of Factoring Your Account Receivable?

Factoring Account Receivable, Financial Accounting

Benefits Of Factoring Account Receivables Businesses are a support system and backup for the economy. After a period of recession or economic depression, the economy regains its stability if businesses are self-sufficient. If the businesses have working capital, capability to expand, hire and grow, the road to economic recovery becomes less painful for the business …

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Cost of Goods Sold: Definition, Formula, Example, and Analysis

Cost of goods sold

Definition: The cost of goods sold is the costs of goods or products sold during a specific period by the entity to its customers. The cost here refers to costs or expenses attributable directly to the goods or products that the entity sold, including the cost of direct labor, direct materials, and direct overheads. These …

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4 Best Account Payable Books of All Time – Recommended

Account Payable, Books, Managerial Accounting

Overview: Account Payable Management is one of the most important roles of the management team in the company, especially executive management in the finance section. Controlling cash payment is as important as controlling cash collection. Generally, the controlling of these sections is done by the expertise of the executive person in finance sections that gain …

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What is Accounts Payable? Definition, Recognition, and Measurement, Recording, Example

Account Payable

Definition: Accounts payable are the liabilities that the companies owe to their suppliers as the result of purchasing goods or rendering the services on credits. For example, the company should record accounts payable as the result of purchasing USD1,000 in credits for a personal computer for staff. Accounts payable are types of current liabilities which …

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