Management of Accounting Receivable for Bangladesh

In: Business and Management

Submitted By alforid377
Words 321
Pages 2
Submitted To:
Khandakar Mahfuzul Alam
Assistant professor, Department of Accounting
Govt. Azizul Haque College, Bogra

Submitted by:
Sumita Akter
University roll: 9795
Registration no: 1755608
Academic Session: 2010-11
Class Roll: 136
BBA (2nd year)
Department of Accounting
National University
Govt. Azizul Haque College, Bogra

Letter of Transmittal

Date:
Khandakar Mahfuzul Alam
Assistant professor, Department of Accounting
Govt. Azizul Haque College, Bogra

Subject: Submission of Internal Term Paper

Dear sir,
I have the honour to state that I would like convey to your knowledge that as per our BBA program, I have prepared my Term paper under the topic of “Capital Structure Decision of a Firm” .Under your kind supervision. Now I like to submit my Term paper to you. I have tried my level best to prepare. The paper is consistence with the optional standard under your valuable.

I request you modesty to accept my paper considering the limitations in papering with only the theoretical knowledge.

Sincerely Yours
Sumita Akter
University roll: 9795
Registration no: 1755608
Academic Session: 2010-11
Class Roll: 136
BBA (2nd year)
Department of Accounting
National University
Govt. Azizul Haque College, Bogra

Preface

All praised to the Almighty Allah who has given me the capability to write the Term Paper Than I would like to express my special thanks of gratitude to my teacher Khandakar Mahfuzul Alam as well as our Teacher who gave me the golden opportunity to do this wonderful project on the topic Capital Structure Decision of a Firm.which also helped me in doing a lot of Research and i came to know about so many new things. I am really thankful to them. Secondly i would also like to thank my parents and friends who helped me a lot in…...

Similar Documents

Accounting Regulation in Bangladesh

...Introduction Accounting standards establish the rules for accounting in a country and prescribe what should be reported in a company’s financial statements in that territory. Their purpose is to ensure that consistent approaches of accounting are adopted nationally. They minimize the risk of material misstatement in accounts and help investors make decisions by ensuring they can get comparable information. Accounting standards, as laid down by a country’s law, are applicable to all companies registered within its territory. But in order to ensure the success, the regulating process must be established. In Bangladesh BFRS and BAS are used as the accounting and reporting standards for the companies. Companies are obliged to follow those standards and laws and some are free from such restrictions. In this assignment, a theoretical analysis has been made regarding the accounting regulation and standard setting process in Bangladesh. 2. Accounting Regulation in Bangladesh All the companies in Bangladesh (both public limited companies and private limited companies) are regulated by The Companies Act of 1994 that provides the basic requirements for the companies. It includes the requirements about financial reporting and accounting practices. But most importantly, this act is silent about either Bangladesh Accounting Standards (BAS) or International Accounting Standards (IAS),. description about the laws and regulations for different types of entities in Bangladesh has been......

Words: 1182 - Pages: 5

Accounts Receivable Management

...Managing Accounts Receivables Topic: Managing accounts receivables Name: Course: Instructor’s Name: Date: Accounts receivables have both positive and negative aspects. They are an indicator of robust sales and reliable customer base. However, the fact that accounts receivables do not constitute cash at hand or in the bank leaves a possibility of not collecting the money. Therefore, it is crucial to have in place, a system to manage accounts receivables, as well as logical implementation of effective credit and collection policies (Brigham, 2009). Credit and collection policies are an organization’s rules governing the functions of its credit and collection department. A billing manager should consider the organization’s mission and goals, financial obligations, and demands regarding risks when implementing such policies (Hong, 2008). In order to meet its financial obligations such as current expenses and bills, an organization should maintain an adequate float of cash in its possession. Ineffective credit and collection policies affect an organization’s cash flow. Policies that leave room for delayed collection activities, or extension in payment hinder a firm’s ability to meet its financial obligations (Hong, 2008). Any credit and collection policy should be in line with the organization’s goals. Organizations usually set goals that rhyme with their strategic direction and prevailing market conditions. Policies for managing credit should be in such a way as to......

Words: 300 - Pages: 2

Receivable Management

...REPORT ON ACCOUNT RECEIVABLE MANAGEMENT TATA STEEL Prepared by www.AssignmentPoint.com Date: 21-05-202 EXECUTIVE SUMMARY The project deals in “account receivable management at Tata Steel”. Receivable management is one of the most important aspects of the organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management. Debtors occupy an important position in the structure of current assets of a firm. They are the outcome of rapid growth of trade credit granted by the firms to their customers. Trade credit is the most prominent force of modern business. It is considered as a marketing tool acting as a bridge for the movement of goods through production and distribution stages to customers. Till few years back, Tata Steel had a very strict policy of selling against advance payments. That was an era of controlled economy. However, with an increasing domestic and international competition, Tata Steel could no longer afford this policy, in order to maintain its premium position. Further in order to capture a greater amount of market share, it was compelled to go by the industry norms and thus it ushered into the new era of credit sales. This resulted in credit sales going up significantly. A credit limit was sanctioned to every customer. The customers were required to pay the outstanding......

Words: 3462 - Pages: 14

Accounting for Receivables

...CHAPTER 9: Accounting for receivables ANSWERS TO QUESTIONS  1. Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services in the normal course of business operations (i.e. in trade). Notes receivable represent claims that are evidenced by formal instruments of credit.  4. The essential features of the allowance method of accounting for impairment of receivables are: (1) Impaired accounts receivable are estimated and matched against revenue in the same accounting period in which the revenue occurred. (2) Estimated uncollectables are debited to Bad Debts Expense and credited to Allowance for Impairment through an adjusting entry at the end of each period. (3) Actual uncollectables are debited to Allowance for Impairment and credited to Accounts Receivable at the time the specific account is written off.  9. From its own credit cards, the Virgil Ltd may realise financing charges from customers who do not pay the balance due within a specified grace period. National credit cards offer the following advantages: (1) The credit card issuer makes the credit card investigation of the customer. (2) The issuer maintains individual customer accounts. (3) The issuer undertakes the collection process and absorbs any losses from uncollectable accounts. (4) The retailer receives cash more quickly from the credit card issuer than it would from......

Words: 1210 - Pages: 5

Accounting in Management

...Accounting is the language of business. In management, accounting is used on a daily basis to make important decisions. Managers use balance sheets to determine the cash on hand so they can know how to pay for purchases-with cash or with a payable. The balance sheet also tells us accounts receivable and accounts payable. This is important because it can help prevent a loss of income by following up with receivables and an overdue payment on payables. Knowing the company’s budget and how to read it is also an important aspect of management. It is vital to stay on or under budget to generate a profit and to make sure projects are going as planned. Accounting information can also tell managers trends in the company’s sales and profits so if sales start falling managers can recognize this quickly and fix the issue so they can continue to turn a profit. Accounting information is used in part to set the company’s goals, look at the performance of the company-from individuals to departments to the whole, and to make decisions about products. Without accounting, managers would have to make decisions based on instinct, rather than based on the hard facts like they are able to do by using the resources given to us by accounting. Upper level management uses the net income to decide how many, if any, dividends are paid out to stockholders. It’s also important to know how much inventory the company has in its possession so managers can decide how to proceed with either ordering more or......

Words: 319 - Pages: 2

Accounting Standard in Bangladesh

...ISSN: 2277 – 100X RIJBFA RADIX INTERNATIONAL JOURNAL OF BANKING, FINANCE AND ACCOUNTING DECISION MAKING AND THE ROLE OF MANAGEMENT ACCOUNTING FUNCTION – A REVIEW OF EMPIRICAL LITERATURE Fitsum Kidane (Phd. Research scholar), Lecturer in Accounting and Finance College of Business and Economics Mekelle University Mekelle, Ethiopia Abstract This study examines decision making and the role of management accounting function in a business organization. Using the review of literature, I identify management accountants perform a wide variety of tasks. Only a part of management accounting activity is directed at performance improvement. Some of the activities they perform are related to the statutory reporting requirements of the organization. Some of these are related to the operational requirements of the finance function itself such as processing transactions receiving money and paying bills. Literature foresees new management accounting techniques and changes in organizational and business environments having a huge impact on management accountants’ roles, yet empirical evidence on fundamental shifts in these roles remains relatively scarce. Journal of Radix International Educational and Research Consortium www.rierc.org RIJBFA KEYWORDS Volume 1, Issue 4(April 2012) ISSN: 2277 – 100X Decision making, management accountant, management accounting INTRODUCTION Accounting can be defined as "the process of identifying, measuring and communicating......

Words: 5199 - Pages: 21

Management Accounting

...Chapter 1 Introduction to Accounting and Business OBJECTIVES Obj 1 Describe the nature of a business and the role of ethics and accounting in business. Obj 2 Summarize the development of accounting principles and relate them to practice. Obj 3 State the accounting equation and define each element of the equation. Obj 4 Describe and illustrate how business transactions can be recorded in terms of the resulting change in the basic elements of the accounting equation. Obj 5 Describe the financial statements of a proprietorship and explain how they interrelate. QUESTION GRID True /......

Words: 37188 - Pages: 149

Accounting Practice in Bangladesh

...Accounting Practice: It is the routine manner in which the day-to-day financial activities of a business entity are gathered and recorded. A firm’s accounting practice refers to the method by which its accounting policies are implemented and adhered to on a routine basis, typically by an accountant and auditor or a team of accounting professionals. Accounting in Bangladesh: In Bangladesh, the profession of Accountancy developed during the British colonial period. Today it is represented by two professional bodies, the Institute of Cost and Management Accountant of Bangladesh (ICMAB) and the Institute of Chartered Accountants of Bangladesh (ICAB). Chartered Accountants complete their training in practicing firms and specialize in financial accounting, financial audit and tax. CMAs receive particular training in cost audit, management audit and management accounting as well as general accounting and taxation. Both the ICMAB and ICAB are under the administrative control of the Ministry of Commerce. The government of Bangladesh considers both type professional accountants equal in respect of employment in government services. The Generally Accepted Accounting Principles (GAAP) in Bangladesh is based upon standards set by the ICAB which has stated its intention to adopt International Financial Reporting Standards (IFRS). The Institute of Cost and Management Accountants of Bangladesh (ICMAB) It is the only institution in the country dedicated to Cost and Management......

Words: 696 - Pages: 3

Accounting for Ngo in Bangladesh

...Handbook Budget & Balance Report vFkZ'kkL= Corpus Voucher NGO Fixed Assets Register Grants Accounting Standards Narration Receipts and Revenue Stamps Benedetto Cotrugli Ledgers Regulation Cash Box Revolving Funds Accounting Multiple Cash Books Trial Balance Auditors Computerized Accounts Deficit Endowments Investments Journal Honorarium Form IIIA Bank Reconciliation Account Payee, Not Negotiable ction 10(23C)(iv) Blank Cheque Tax Exemption vkpk;Z dkSfVY; Key Persons ACCOUNTABILITY Contribution in Kind INCOME Transparency Public Disclosure Auditors’ Certificate Debit Stock Register Receipts & Payments Societies Registration Act, 1860 Public Trust TM AccountAid India Section 25 Non-profit Company Section 80G New Delhi Donation Ear-marked Funds Salary Register izfrxzkgdSÜpk;a Gratuity Conflict of Interest About this book (front inside cover) The AccountAble Handbook is a compilation of the individual issues of ‘AccountAble’, released by AccountAid India since 1994. These issues have been designed and circulated on a monthly basis primarily for the partners of our client Agencies. ‘AccountAble’ is circulated to about 1,200 persons, including Chartered Accountants. It is also available through e-mail, on a complimentary basis. The present compilation brings all issues of AccountAble related to accounting and regulation of non-profit organisations together at one place. Issues related to FCRA......

Words: 101450 - Pages: 406

Accounts Receivable Management

...CHAPTER 2 SYSTEM DEVELOPMENT LIFE CYCLE TYPES OF INFORMATION SYSTEM Transaction Processing Systems A transaction processing system provides a way to collect, process, store, display modify or cancel transactions. Most of these systems allow multiple transactions to take place simultaneously. The data that this system collects is usually stored in databases which can be used to produce reports such as billing, wages, inventory summaries, manufacturing schedules, or check registers. Management Information Systems A management information system is an information system that uses the data collected by the transaction processing system and uses this data to create reports in a way that managers can use it to make routine business decisions in response to problems. Some of the reports that this information system creates are summary, exception and ad hoc reports. All this is done to increase the efficiency of managerial activity. Decision Support Systems A decision support system helps make decisions by working and analyzing data that can generate statistical projections and data models. This system gives support rather than replacing a managers judgement while improving the quality of a managers decision. A DSS helps solve problems while using external data. Expert Systems and Neutral Networks An expert system, also known as a knowledge-based system, is a computer system that is designed to analyze data and produce recommendations, diagnosis and decisions that are......

Words: 1013 - Pages: 5

Accounting for Ngo in Bangladesh

...political activity of the country or region involved. So, we can say that NGOs have become major players in the field of international and national development. Bangladesh has largely failed to assist the poor or reduce poverty because of limited resources and planning, while NGOs have grown dramatically, but it ostensibly fails to fill this gap. There are more and bigger NGOs here than in any other country of equivalent size. Here, NGOs have mainly functioned to service the needs of the landless, usually assisted by foreign donor funding as a counterpoint to the state's efforts. Besides all these, in the field of NGO, Financial Reporting process and application of accounting is disgraceful. NGOs in Bangladesh have increasingly become subject to question and criticism from the government, political parties, intellectuals and the public in genus for misuse of funds, gender discrimination, and nepotism. Absence of proper guidelines in preparing financial statements and reports makes it more complex. The government of Bangladesh doesn’t have any unique rules for preparing the financial reports. In this report we will discuss about the financial reporting and Accounting system of NGOs and hopefully, the analysis and discussion of reporting systems will give guidance and support to the NGOs about the generation of accounting systems and reporting procedure, and to maintain a transparent system of utilizing grants. 1.2 Statement of the Problem: NGO is a very old......

Words: 8816 - Pages: 36

Accounting for Ngo in Bangladesh

...sum of all reference signals is set. A transmitter supplies the PID controller with a feedback signal from the process to indicate its current state. The type of feedback signal in use depends upon the type of process. The reference range cannot exceed the feedback range. This means that deviations that occur between the reference/setpoint and the actual process state are sensed. Such deviations are compensated for by the PID regulator by adjusting the output frequency as required by the difference (or error) between the reference/setpoint and the feedback signal. The PID controller in the drive has been designed for use in HVAC applications and to perform a number of specialized functions. Previously, it was necessary for a building management system to handle these special functions by installing extra modules to program the system. With the VLT 6000, there is no need for extra modules to be installed. Only the reference and/or setpoint and a selected feedback signal need to be programmed. An advanced feature of the VLT 6000 is the drive’s ability to accept two feedback signals, making two-zone regulation possible. Voltage drop in long control cables can be compensated for by using the scaling parameters for the analog inputs. Feedback The feedback signal must be connected to the drive according to the table below, depending on the type of feedback signal and the settings of the associated parameters listed. Feedback type Pulse Voltage Terminal 33 53 or......

Words: 54111 - Pages: 217

Management Accounting Development and Practices in Bangladesh

...Management accounting is not new in any sense of the world. The origins of modern management accounting can be traced to the emergence of managed, hierarchical enterprises in the early nineteenth century (Johnson and Kaplan, 1987) [2]. The Industrial Revolution in the early nineteenth century resulted in the emergence of a factory system that dramatically changed the production process (Ashton, D., Hopper, T. and Scapens, R.W. 1991) [3]. This has created a new demand for accounting information. Market information, which had automatically provided details of materials and piecework labor costs incurred in meeting each customer’s order, was no longer available. In particular, information was required to determine the cost of the internal operations and also to measure the efficiency of converting materials leading to the finished product (Parker, 2002) [4]. Johnson and Kaplan (1987) [2] suggest that, notwithstanding the impact of the Industrial Revolution, the emergence and rapid growth of railways in the mid-nineteenth century was the major driving force in the development of management accounting systems. New measures such as cost per ton-mile, cost per passenger mile and the ratio of operating expenses to revenues were created and reported on a segmental and regional basis. Many of the innovative management accounting measures developed by railway companies were subsequently absorbed and developed by the other business sectors. During the nineteenth century the development...

Words: 397 - Pages: 2

Cyclone Disaster and Its Management in Bangladesh

...Cyclone disaster and its management in Bangladesh Bangladesh is currently ranked as one of the world’s most disaster-prone countries, with 97.1per cent of its total area and 97.7 per cent of the total population at risk of multiple hazards, including cyclones (World Bank, 2005). From 1891–98, approximately 178 severe cyclones with wind speeds of more than 87 kilometers per hour (km/h) formed in the Bay of Bengal, causing extensive loss of life and destruction of property. Location of Bangladesh at the head funnel shaped of Bay of Bangle makes it vulnerable to cyclones. On the average one to five severe cyclones hit Bangladesh each year. Storm path Cyclone (source: dailymail.co.uk & www.funonthenet.in) Cyclones and Storm Surges Cyclones can cause immense loss of life and destruction of property during pre-monsoon (April- May), and post-monsoon (October-November.) periods. The Bay of Bengal is the breeding place of catastrophic cyclones. It is presumed that the Inter –Tropical Convergence Zone (ITCZ), which is situated near the equator, and where winds from the two hemispheres meet, plays a vital part in the formation of the tropical cyclones in this area. Classification of Cyclone Cyclones in the Bangladesh are classified according to their intensity and the following nomenclatures are in......

Words: 666 - Pages: 3

Accounting for Ngo's in Bangladesh

...international and national development. But Bangladesh has largely failed to assist the poor or reduce poverty because of limited resources and planning, while NGOs have grown dramatically, but it ostensibly fails to fill this gap. There are more and bigger NGOs here than in any other country of equivalent size. Here, NGOs have mainly functioned to service the needs of the landless, usually assisted by foreign donor funding as a counterpoint to the state's efforts. Besides all these, in the field of NGO, Financial Reporting process and application of accounting is disgraceful. NGOs in Bangladesh have increasingly become subject to question and criticism from the government, political parties, intellectuals and the public in genus for misuse of funds, gender discrimination, and nepotism. Absence of proper guidelines in preparing financial statements and reports makes it more complex. The government of Bangladesh doesn’t have any unique rules for preparing the financial reports. In this report we will discuss about the financial reporting and Accounting system of NGOs and hopefully, the analysis and discussion of reporting systems will give guidance and support to the NGOs about the generation of accounting systems and reporting procedure, and to maintain a transparent system of utilizing grants. 1.1 Defining NGO: NGO is an organization that is not part of the local or state or federal government. It is a legal accounting entity that is......

Words: 4751 - Pages: 20