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Suppliers are very concerned about a company's financial position, because most sales to companies are done on a 30 day payment plan. The suppplier delivers the supplies and waits up to 30 days for payment. If the company is close to bankruptcy and the supplier ships supplies to that company, it is likely that the supplier will not be paid. If the supplies are used up, it can't take tham back, so te supplier will most likely take a loss on the bill. Many times, if suppliers suspect an imminent bankruptcy, they will deliver supplies only if paid for in cash on delivery.
What else can I help you with?
What is a accrual date?
An accrual date is the date on which a financial position is recognised. E.g. if an invoice from a supplier is not yet recieved but the position needs to be reflected in the result of the company an accrual can be accounted for that amount to a specific period, mostly at the end of a month of a year.
What reflects the financial position of a company at any given time?
The 'financial statement' reflects the financial position of a company at any given time.
How would you analyze financial position of Company from point of view of an 1Investor. 2 Creditor and3 Financial executive of the company?
How would you analyse the financial position of a company from the point of view of an: (i) Investor (ii) A creditor, (iii) A share holder
How do you measure company performance?
You can measure a company's performance by assessing their financial position. There are many financial ratios that can be used to see if a company is performing.
What financial statement is concerned with the company at a point in time?
This relates to a company's balance sheet (aka statement of financial position). The balance sheet provides, in essence, a "snapshot" of a company at a point in time. This differs from a statement of cash flows, or an income statement, both of which essentially show the events or transactions of a company that occurred during a certain period of time.
What reports a company's financial position?
It's the Balance Sheet.
What is the basic purpose of funds flow statement?
Financial position of the company
What must balance with assets on the balance sheet in order to accurately reflect the financial position of a company?
Liabilities must balance with assets on the balance sheet in order to accurately reflect the financial position of a company.
what is ratio analysis?
it refers to the assessment of financial statements of a company to make decisions regarding performance and financial position. it covers various areas of a company, like profitability, liquidity, solvency, and market value.
What is the difference between the perspective of financial management and accounting?
Financial management focuses on the strategic planning, organizing, directing, and controlling of financial activities, aiming to maximize shareholder value and ensure the efficient use of company resources. In contrast, accounting primarily deals with the systematic recording, reporting, and analysis of financial transactions, providing a historical view of a company's financial performance and position. While financial management is forward-looking and concerned with future financial strategies, accounting is retrospective and emphasizes compliance and accurate financial reporting.
What are financial forecasts and financial projections?
Financial forecasts and financial projections are estimated future financial statements of the company that presents its expected financial position. Financial forecasts assume that the company will continue to function in the same manner as it is currently functioning and in financial projections there are few hypothetical assumptions about a company's future course of action.
Which of these explains the financial position of a company at a specific point in time?
balance sheet
