Posted: March 2nd, 2014
basic accounting
a couple hundered words should be good.
1. How can common size statements be useful for comparison purposes? To what can you compare? How can a company improve itself with the information generated? Use at least one SPECIFIC example (your own or through research) to bolster your response.
2. Why are a company’s credits policy and it’s accounts receivable management so important? What are some possible repercussions of not managing these? Provide an example of a company that didn’t have a strong credit policy and/or did a poor job of managing it’s accounts receivable and paid a steep price for doing so
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