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Short term financing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Short term financing

  • This topic has 1 reply, 2 voices, and was last updated 10 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 3, 2021 at 9:22 pm #630314
    moku
    • Topics: 12
    • Replies: 11
    • ☆

    Hello sir,
    What factors should be taken into account when extending credit to customers????

    My thoughts:
    -credit risk : you have to define the amount of risk your firm is willing to accept.
    -credit term: you have to decide how much credit you are willing to extend, and how long can you afford to wait for payment.
    – credit application- determine creditworthiness.
    ETC
    I don’t know whether I’m right or wrong.

    August 4, 2021 at 8:20 am #630338
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49598
    • ☆☆☆☆☆

    It is OK 🙂

    This is all covered in Chapter 5 of our free lecture notes and the free lectures working through that chapter.

    The lectures are a complete free course for Paper FM and cover everything needed to be able to pass the exam well.

  • Author
    Posts
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