Management Of Accounts Receivable And Inventories Introduction - Financial Management

Accounts receivable and inventories constitute important investments for most companies. As we saw earlier in, these two current assets represent sizable proportions of the total assets of firms in a wide variety of industries. Among firms engaged in wholesale and retail trade, the proportions for each asset are often 25 percent or more of total assets in many companies. In the next two sections, we discuss the management of accounts receivable.We examine inventory management in the remainder of the chapter.

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Financial Management Topics