Funds Flow Analysis
Ageing Schedule
Days Sales Outstanding
Collection Matrix
Answer is Right!
Answer is Wrong!
The correct answer is: A. Funds Flow Analysis
Funds flow analysis is a technique used to track the flow of money into and out of a business. It is not a technique of receivables management.
Receivables management is the process of managing a company’s accounts receivable. It includes tasks such as credit checking, invoicing, and collections.
The following are some of the techniques used in receivables management:
- Ageing schedule: An ageing schedule is a report that shows the age of each customer’s account. It is used to identify customers who are overdue on their payments.
- Days sales outstanding (DSO): DSO is a measure of how long it takes a company to collect its receivables. It is calculated by dividing the average accounts receivable by the average daily sales.
- Collection matrix: A collection matrix is a tool that helps companies to prioritize their collections efforts. It ranks customers based on their creditworthiness and the age of their accounts.
I hope this helps! Let me know if you have any other questions.