SlideShare a Scribd company logo
1 of 25
FINANCIAL
MANAGEMENT IN EDUCATION
By:
Samson C. Quanico
(M.A.Ed. –Educational Management
Pasig Catholic School
School of Graduate Studies
MANAGEMENT OF
ACCOUNTS
RECEIVABLE
BY:
SAMSON C. QUANICO
M.A.Ed, Educational Management
Pasig Catholic School
School of Graduate Studies
When a business extends credit to its
customers, it records a revenue transaction at
the time it provides its customer with goods or
services. The transaction results in a revenue
account increase and an increase in an asset
account. Since no cash is received, the asset
account that is increased is Accounts
Receivable.
What is an account receivable?
Example. When SCQ Ventures made its December
delivery the Pasig Grower’s Co-op did not pay the
balance owed until January. When the delivery was
completed the Co-op had an obligation to pay SCQ
Ventures for its services. SCQ Ventures completed the
$50,000 delivery on December 20. Recall that the Co-
op had already paid $5,000 on the delivery, so on
December 20 the following journal entry would be
made:
Primary reasons for increases:
1. Increasing sales
2. Inflation
3. Extended credit terms during
recessions.
A. Accounts receivable as a percentage
of total assets almost doubled for the
typical U.S. corporation
1. Investment in accounts receivable
should generate a return equal
to or in excess of the return
available on alternative
investments.
A. Account receivables are
an investment
Three primary variables for
credit policy administration
1. Credit standards
a. The firm screens credit applicants on the basis of prior record
of payment, financial stability, current net worth, and other factors.
b. 5 C’s of Credit: character, capital, capacity, conditions, collateral.
C. Dun & Bradstreet Information Services (DBIS)
1. Business Information Report
2. Commercial Credit Scoring Report
3. Industry Credit Score Report
d. D-U-N-S Data Universal Number System is a unique nine digit code used
globally and accepted by the United National and other international agencies as
global business identification
2. Terms of trade
Terms of trade is an index of the price of a country's exports in
terms of its imports. The terms of trade are said to improve if that index
rises. (Obstfeld and Rogoff, p 25)
Not the contractual conditions of sale between a buyer and a
seller, but the quantity of foreign goods and services (imports) that a
country can purchase from the proceeds of the sale of its goods and
services (exports) of a given quantity. It is a measure of a country's
trading and is expressed as the ratio of an index of export prices to an
index of import prices. Terms of trade of a country improve when the
prices of its exports rise in comparison with the prices of its imports,
vice versa.
3.Collection policy
Procedures a firm follows in attempting to
collect accounts receivables.
Collection Policy
The steps that a company follows in ensuring
timely payment of its accounts receivable. Collection
policies vary by company. An example of the steps a
company can takes involves a friendly phone call to make
sure payment is made on time, followed by a firm phone
call when a payment is late, followed by a threatening
letter, and finally turning the client over to a collection
agency. Companies may deviate from their collection
policy for long-standing or otherwise trusted customer.
Measures to asses collection
a.Average collection period
b.Ratio of bad debts to sales
c.Aging of accounts receivable
a. Average Collection period
The approximate amount of time that it
takes for a business to receive payments owed,
in terms of receivables, from its customers and
clients
b. Debt Ratio
A financial ratio that measures the extent of a company’s
or consumer’s leverage. The debt ratio is defined as the
ratio of total debt to total assets, expressed in percentage,
and can be interpreted as the proportion of a company’s
assets that are financed by debt.
The higher this ratio, the more leveraged the company and
the greater its financial risk. In the consumer lending and
mortgage businesses, debt ratio is defined as the ratio of total
debt service obligations to gross annual income.
A periodic report showing all outstanding
receivable balances,
broken down by customer and month due.
c. Aging of accounts receivable
The process of investigating a
company's accounts receivable according to how
long individual invoices have been outstanding.
Analysts can use aging to identify bad debt and/or
problems with the company's credit policy.
Inventory Management
Two basic costs associated with
inventory
The first step toward achieving
minimum inventory costs is determine of the
optimal order quantity. This quantity may be
derived by use of the economic order
quantity formula
Where:
S= sales
O= the cost to process an order
C annual carrying costs per unit in dollars
Minimum total inventory costs will result if the
assumptions of the model are applicable and the firm’s
order size equals the economic ordering quantity.
Just-in-Time Inventory
Management (JIT)
End
References:
http://financial-dictionary.thefreedictionary.com/Collection+policy
Read more:
http://www.businessdictionary.com/definition
/terms-of-trade.html#ixzz2yUoc1HXI

More Related Content

What's hot

School Plant Management Educ. 265
School Plant Management Educ. 265School Plant Management Educ. 265
School Plant Management Educ. 265Elma Gapusan
 
Administration and Supervision in Education
Administration and Supervision in EducationAdministration and Supervision in Education
Administration and Supervision in EducationCharo May Naigan
 
FUNCTIONS OF SCHOOL ADMINISTRATION AND SUPERVISION
FUNCTIONS OF SCHOOL ADMINISTRATION AND SUPERVISIONFUNCTIONS OF SCHOOL ADMINISTRATION AND SUPERVISION
FUNCTIONS OF SCHOOL ADMINISTRATION AND SUPERVISIONJulie Anne Casa
 
Financial Management for schools.pptx
Financial Management for schools.pptxFinancial Management for schools.pptx
Financial Management for schools.pptxVenanceNDALICHAKO1
 
Roles and Functions of School Heads
Roles and Functions of School HeadsRoles and Functions of School Heads
Roles and Functions of School HeadsIndanan South
 
School base financial management and fiscal responsibility
School base financial management and fiscal responsibilitySchool base financial management and fiscal responsibility
School base financial management and fiscal responsibilityMelanieGraceUlgasanL
 
School Improvement Plan
School Improvement PlanSchool Improvement Plan
School Improvement Plancyril coscos
 
Strategic planning- from DepEd
Strategic planning- from DepEdStrategic planning- from DepEd
Strategic planning- from DepEdSeven De Los Reyes
 
LEGAL BASES OF SCHOOL ADMINISTRATION AND SUPERVISION
LEGAL BASES OF SCHOOL ADMINISTRATION AND SUPERVISIONLEGAL BASES OF SCHOOL ADMINISTRATION AND SUPERVISION
LEGAL BASES OF SCHOOL ADMINISTRATION AND SUPERVISIONCey Gloria
 
Administration and Supervision in Evaluation
Administration and Supervision in EvaluationAdministration and Supervision in Evaluation
Administration and Supervision in EvaluationSharon Geroquia
 
Syllabus fiscal management
Syllabus  fiscal managementSyllabus  fiscal management
Syllabus fiscal managementDioscoro Ninan
 
DepEd, CHED and TESDA
DepEd, CHED and TESDADepEd, CHED and TESDA
DepEd, CHED and TESDArajnulada
 
School-Based Management (SBM).pptx
School-Based Management (SBM).pptxSchool-Based Management (SBM).pptx
School-Based Management (SBM).pptxArnulfo Bayos
 
Physical plant and facilities in educational management
Physical plant and facilities in educational managementPhysical plant and facilities in educational management
Physical plant and facilities in educational managementCheryl Asia
 
Educational planning and Management
Educational planning and ManagementEducational planning and Management
Educational planning and ManagementDr.Shazia Zamir
 

What's hot (20)

School Plant Management Educ. 265
School Plant Management Educ. 265School Plant Management Educ. 265
School Plant Management Educ. 265
 
Administration and Supervision in Education
Administration and Supervision in EducationAdministration and Supervision in Education
Administration and Supervision in Education
 
FUNCTIONS OF SCHOOL ADMINISTRATION AND SUPERVISION
FUNCTIONS OF SCHOOL ADMINISTRATION AND SUPERVISIONFUNCTIONS OF SCHOOL ADMINISTRATION AND SUPERVISION
FUNCTIONS OF SCHOOL ADMINISTRATION AND SUPERVISION
 
Financial Management for schools.pptx
Financial Management for schools.pptxFinancial Management for schools.pptx
Financial Management for schools.pptx
 
Revenue administration
Revenue administrationRevenue administration
Revenue administration
 
Roles and Functions of School Heads
Roles and Functions of School HeadsRoles and Functions of School Heads
Roles and Functions of School Heads
 
School base financial management and fiscal responsibility
School base financial management and fiscal responsibilitySchool base financial management and fiscal responsibility
School base financial management and fiscal responsibility
 
School Improvement Plan
School Improvement PlanSchool Improvement Plan
School Improvement Plan
 
Strategic planning- from DepEd
Strategic planning- from DepEdStrategic planning- from DepEd
Strategic planning- from DepEd
 
Financial management for the ace school
Financial management for the ace schoolFinancial management for the ace school
Financial management for the ace school
 
Educational Planning
Educational PlanningEducational Planning
Educational Planning
 
LEGAL BASES OF SCHOOL ADMINISTRATION AND SUPERVISION
LEGAL BASES OF SCHOOL ADMINISTRATION AND SUPERVISIONLEGAL BASES OF SCHOOL ADMINISTRATION AND SUPERVISION
LEGAL BASES OF SCHOOL ADMINISTRATION AND SUPERVISION
 
Administration and Supervision in Evaluation
Administration and Supervision in EvaluationAdministration and Supervision in Evaluation
Administration and Supervision in Evaluation
 
Syllabus fiscal management
Syllabus  fiscal managementSyllabus  fiscal management
Syllabus fiscal management
 
DepEd, CHED and TESDA
DepEd, CHED and TESDADepEd, CHED and TESDA
DepEd, CHED and TESDA
 
Dep ed order no. 8 s. 2007
Dep ed order no. 8 s. 2007Dep ed order no. 8 s. 2007
Dep ed order no. 8 s. 2007
 
School-Based Management (SBM).pptx
School-Based Management (SBM).pptxSchool-Based Management (SBM).pptx
School-Based Management (SBM).pptx
 
Physical plant and facilities in educational management
Physical plant and facilities in educational managementPhysical plant and facilities in educational management
Physical plant and facilities in educational management
 
Current Legal Issues In Education
Current Legal Issues In EducationCurrent Legal Issues In Education
Current Legal Issues In Education
 
Educational planning and Management
Educational planning and ManagementEducational planning and Management
Educational planning and Management
 

Similar to Financial Management in Education

Receivables management
Receivables management  Receivables management
Receivables management kinnarry
 
Debtors turnover ratio final
Debtors turnover ratio finalDebtors turnover ratio final
Debtors turnover ratio finalmeenugorandle
 
| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...
| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...
| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...Ahmad Hassan
 
Discounting, factoring & forfaiting
Discounting, factoring & forfaitingDiscounting, factoring & forfaiting
Discounting, factoring & forfaitingSuneet Herekar
 
1. basic accounting terminology
1. basic accounting terminology1. basic accounting terminology
1. basic accounting terminologyNavin Paudel
 
Report-Working-capital-management.pptx
Report-Working-capital-management.pptxReport-Working-capital-management.pptx
Report-Working-capital-management.pptxMarvinFallorina
 
Working capital, credit & ar management
Working capital, credit & ar managementWorking capital, credit & ar management
Working capital, credit & ar managementRajendra Patra
 
ACC 291 GENIUS NEW Introduction Education--acc291genius.com
 ACC 291 GENIUS NEW Introduction Education--acc291genius.com ACC 291 GENIUS NEW Introduction Education--acc291genius.com
ACC 291 GENIUS NEW Introduction Education--acc291genius.comclaric275
 
ACC 291 GENIUS NEW Education Begins--acc291genius.com
ACC 291 GENIUS NEW Education Begins--acc291genius.comACC 291 GENIUS NEW Education Begins--acc291genius.com
ACC 291 GENIUS NEW Education Begins--acc291genius.comkopiko191
 
Bookkeeping Basic & Quickbooks for Contractors
Bookkeeping Basic & Quickbooks for ContractorsBookkeeping Basic & Quickbooks for Contractors
Bookkeeping Basic & Quickbooks for ContractorsTerry Chong
 
Receivable management and Factoring (By BU AIS 2nd Batch)
Receivable management and Factoring (By BU AIS 2nd Batch)Receivable management and Factoring (By BU AIS 2nd Batch)
Receivable management and Factoring (By BU AIS 2nd Batch)Jessic Sharif
 
ACC 291 GENIUS NEW Remember Education--acc291genius.com
ACC 291 GENIUS NEW Remember Education--acc291genius.comACC 291 GENIUS NEW Remember Education--acc291genius.com
ACC 291 GENIUS NEW Remember Education--acc291genius.comchrysanthemu4
 
MANAGEMENT OF RECEIVABLES.pdf
MANAGEMENT OF RECEIVABLES.pdfMANAGEMENT OF RECEIVABLES.pdf
MANAGEMENT OF RECEIVABLES.pdfChristianProgio
 
Cash receivables management
Cash receivables managementCash receivables management
Cash receivables managementHannah Rain
 
Topic 2 tools techniques of managing of inventories
Topic   2 tools   techniques of managing of inventoriesTopic   2 tools   techniques of managing of inventories
Topic 2 tools techniques of managing of inventoriesRAJKAMAL282
 

Similar to Financial Management in Education (20)

Receivables management
Receivables management  Receivables management
Receivables management
 
Moses San Miguel
Moses San MiguelMoses San Miguel
Moses San Miguel
 
Debtors turnover ratio final
Debtors turnover ratio finalDebtors turnover ratio final
Debtors turnover ratio final
 
| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...
| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...
| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...
 
Discounting, factoring & forfaiting
Discounting, factoring & forfaitingDiscounting, factoring & forfaiting
Discounting, factoring & forfaiting
 
Financial Accounting MCQ
Financial Accounting MCQFinancial Accounting MCQ
Financial Accounting MCQ
 
Factoring
Factoring Factoring
Factoring
 
1. basic accounting terminology
1. basic accounting terminology1. basic accounting terminology
1. basic accounting terminology
 
Report-Working-capital-management.pptx
Report-Working-capital-management.pptxReport-Working-capital-management.pptx
Report-Working-capital-management.pptx
 
Working capital, credit & ar management
Working capital, credit & ar managementWorking capital, credit & ar management
Working capital, credit & ar management
 
ACC 291 GENIUS NEW Introduction Education--acc291genius.com
 ACC 291 GENIUS NEW Introduction Education--acc291genius.com ACC 291 GENIUS NEW Introduction Education--acc291genius.com
ACC 291 GENIUS NEW Introduction Education--acc291genius.com
 
ACC 291 GENIUS NEW Education Begins--acc291genius.com
ACC 291 GENIUS NEW Education Begins--acc291genius.comACC 291 GENIUS NEW Education Begins--acc291genius.com
ACC 291 GENIUS NEW Education Begins--acc291genius.com
 
Bookkeeping Basic & Quickbooks for Contractors
Bookkeeping Basic & Quickbooks for ContractorsBookkeeping Basic & Quickbooks for Contractors
Bookkeeping Basic & Quickbooks for Contractors
 
Receivable management and Factoring (By BU AIS 2nd Batch)
Receivable management and Factoring (By BU AIS 2nd Batch)Receivable management and Factoring (By BU AIS 2nd Batch)
Receivable management and Factoring (By BU AIS 2nd Batch)
 
ACC 291 GENIUS NEW Remember Education--acc291genius.com
ACC 291 GENIUS NEW Remember Education--acc291genius.comACC 291 GENIUS NEW Remember Education--acc291genius.com
ACC 291 GENIUS NEW Remember Education--acc291genius.com
 
MANAGEMENT OF RECEIVABLES.pdf
MANAGEMENT OF RECEIVABLES.pdfMANAGEMENT OF RECEIVABLES.pdf
MANAGEMENT OF RECEIVABLES.pdf
 
Factoring
FactoringFactoring
Factoring
 
Accounting cycle
Accounting cycleAccounting cycle
Accounting cycle
 
Cash receivables management
Cash receivables managementCash receivables management
Cash receivables management
 
Topic 2 tools techniques of managing of inventories
Topic   2 tools   techniques of managing of inventoriesTopic   2 tools   techniques of managing of inventories
Topic 2 tools techniques of managing of inventories
 

Recently uploaded

HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...Nguyen Thanh Tu Collection
 
Barangay Council for the Protection of Children (BCPC) Orientation.pptx
Barangay Council for the Protection of Children (BCPC) Orientation.pptxBarangay Council for the Protection of Children (BCPC) Orientation.pptx
Barangay Council for the Protection of Children (BCPC) Orientation.pptxCarlos105
 
Transaction Management in Database Management System
Transaction Management in Database Management SystemTransaction Management in Database Management System
Transaction Management in Database Management SystemChristalin Nelson
 
Earth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatEarth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatYousafMalik24
 
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfGrade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfJemuel Francisco
 
4.16.24 Poverty and Precarity--Desmond.pptx
4.16.24 Poverty and Precarity--Desmond.pptx4.16.24 Poverty and Precarity--Desmond.pptx
4.16.24 Poverty and Precarity--Desmond.pptxmary850239
 
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...JhezDiaz1
 
Student Profile Sample - We help schools to connect the data they have, with ...
Student Profile Sample - We help schools to connect the data they have, with ...Student Profile Sample - We help schools to connect the data they have, with ...
Student Profile Sample - We help schools to connect the data they have, with ...Seán Kennedy
 
Daily Lesson Plan in Mathematics Quarter 4
Daily Lesson Plan in Mathematics Quarter 4Daily Lesson Plan in Mathematics Quarter 4
Daily Lesson Plan in Mathematics Quarter 4JOYLYNSAMANIEGO
 
Influencing policy (training slides from Fast Track Impact)
Influencing policy (training slides from Fast Track Impact)Influencing policy (training slides from Fast Track Impact)
Influencing policy (training slides from Fast Track Impact)Mark Reed
 
Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxAshokKarra1
 
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptxMULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptxAnupkumar Sharma
 
ROLES IN A STAGE PRODUCTION in arts.pptx
ROLES IN A STAGE PRODUCTION in arts.pptxROLES IN A STAGE PRODUCTION in arts.pptx
ROLES IN A STAGE PRODUCTION in arts.pptxVanesaIglesias10
 
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)lakshayb543
 
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17Celine George
 
Music 9 - 4th quarter - Vocal Music of the Romantic Period.pptx
Music 9 - 4th quarter - Vocal Music of the Romantic Period.pptxMusic 9 - 4th quarter - Vocal Music of the Romantic Period.pptx
Music 9 - 4th quarter - Vocal Music of the Romantic Period.pptxleah joy valeriano
 
4.18.24 Movement Legacies, Reflection, and Review.pptx
4.18.24 Movement Legacies, Reflection, and Review.pptx4.18.24 Movement Legacies, Reflection, and Review.pptx
4.18.24 Movement Legacies, Reflection, and Review.pptxmary850239
 
Full Stack Web Development Course for Beginners
Full Stack Web Development Course  for BeginnersFull Stack Web Development Course  for Beginners
Full Stack Web Development Course for BeginnersSabitha Banu
 
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxQ4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxlancelewisportillo
 

Recently uploaded (20)

HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
HỌC TỐT TIẾNG ANH 11 THEO CHƯƠNG TRÌNH GLOBAL SUCCESS ĐÁP ÁN CHI TIẾT - CẢ NĂ...
 
Barangay Council for the Protection of Children (BCPC) Orientation.pptx
Barangay Council for the Protection of Children (BCPC) Orientation.pptxBarangay Council for the Protection of Children (BCPC) Orientation.pptx
Barangay Council for the Protection of Children (BCPC) Orientation.pptx
 
Transaction Management in Database Management System
Transaction Management in Database Management SystemTransaction Management in Database Management System
Transaction Management in Database Management System
 
Earth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice greatEarth Day Presentation wow hello nice great
Earth Day Presentation wow hello nice great
 
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfGrade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
 
4.16.24 Poverty and Precarity--Desmond.pptx
4.16.24 Poverty and Precarity--Desmond.pptx4.16.24 Poverty and Precarity--Desmond.pptx
4.16.24 Poverty and Precarity--Desmond.pptx
 
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
ENGLISH 7_Q4_LESSON 2_ Employing a Variety of Strategies for Effective Interp...
 
Student Profile Sample - We help schools to connect the data they have, with ...
Student Profile Sample - We help schools to connect the data they have, with ...Student Profile Sample - We help schools to connect the data they have, with ...
Student Profile Sample - We help schools to connect the data they have, with ...
 
Daily Lesson Plan in Mathematics Quarter 4
Daily Lesson Plan in Mathematics Quarter 4Daily Lesson Plan in Mathematics Quarter 4
Daily Lesson Plan in Mathematics Quarter 4
 
Influencing policy (training slides from Fast Track Impact)
Influencing policy (training slides from Fast Track Impact)Influencing policy (training slides from Fast Track Impact)
Influencing policy (training slides from Fast Track Impact)
 
Raw materials used in Herbal Cosmetics.pptx
Raw materials used in Herbal Cosmetics.pptxRaw materials used in Herbal Cosmetics.pptx
Raw materials used in Herbal Cosmetics.pptx
 
Karra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptxKarra SKD Conference Presentation Revised.pptx
Karra SKD Conference Presentation Revised.pptx
 
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptxMULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
 
ROLES IN A STAGE PRODUCTION in arts.pptx
ROLES IN A STAGE PRODUCTION in arts.pptxROLES IN A STAGE PRODUCTION in arts.pptx
ROLES IN A STAGE PRODUCTION in arts.pptx
 
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
Visit to a blind student's school🧑‍🦯🧑‍🦯(community medicine)
 
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
 
Music 9 - 4th quarter - Vocal Music of the Romantic Period.pptx
Music 9 - 4th quarter - Vocal Music of the Romantic Period.pptxMusic 9 - 4th quarter - Vocal Music of the Romantic Period.pptx
Music 9 - 4th quarter - Vocal Music of the Romantic Period.pptx
 
4.18.24 Movement Legacies, Reflection, and Review.pptx
4.18.24 Movement Legacies, Reflection, and Review.pptx4.18.24 Movement Legacies, Reflection, and Review.pptx
4.18.24 Movement Legacies, Reflection, and Review.pptx
 
Full Stack Web Development Course for Beginners
Full Stack Web Development Course  for BeginnersFull Stack Web Development Course  for Beginners
Full Stack Web Development Course for Beginners
 
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxQ4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
 

Financial Management in Education

  • 1. FINANCIAL MANAGEMENT IN EDUCATION By: Samson C. Quanico (M.A.Ed. –Educational Management Pasig Catholic School School of Graduate Studies
  • 2. MANAGEMENT OF ACCOUNTS RECEIVABLE BY: SAMSON C. QUANICO M.A.Ed, Educational Management Pasig Catholic School School of Graduate Studies
  • 3. When a business extends credit to its customers, it records a revenue transaction at the time it provides its customer with goods or services. The transaction results in a revenue account increase and an increase in an asset account. Since no cash is received, the asset account that is increased is Accounts Receivable. What is an account receivable?
  • 4. Example. When SCQ Ventures made its December delivery the Pasig Grower’s Co-op did not pay the balance owed until January. When the delivery was completed the Co-op had an obligation to pay SCQ Ventures for its services. SCQ Ventures completed the $50,000 delivery on December 20. Recall that the Co- op had already paid $5,000 on the delivery, so on December 20 the following journal entry would be made:
  • 5. Primary reasons for increases: 1. Increasing sales 2. Inflation 3. Extended credit terms during recessions. A. Accounts receivable as a percentage of total assets almost doubled for the typical U.S. corporation
  • 6. 1. Investment in accounts receivable should generate a return equal to or in excess of the return available on alternative investments. A. Account receivables are an investment
  • 7. Three primary variables for credit policy administration 1. Credit standards a. The firm screens credit applicants on the basis of prior record of payment, financial stability, current net worth, and other factors. b. 5 C’s of Credit: character, capital, capacity, conditions, collateral. C. Dun & Bradstreet Information Services (DBIS) 1. Business Information Report 2. Commercial Credit Scoring Report 3. Industry Credit Score Report d. D-U-N-S Data Universal Number System is a unique nine digit code used globally and accepted by the United National and other international agencies as global business identification
  • 8. 2. Terms of trade Terms of trade is an index of the price of a country's exports in terms of its imports. The terms of trade are said to improve if that index rises. (Obstfeld and Rogoff, p 25) Not the contractual conditions of sale between a buyer and a seller, but the quantity of foreign goods and services (imports) that a country can purchase from the proceeds of the sale of its goods and services (exports) of a given quantity. It is a measure of a country's trading and is expressed as the ratio of an index of export prices to an index of import prices. Terms of trade of a country improve when the prices of its exports rise in comparison with the prices of its imports, vice versa.
  • 9. 3.Collection policy Procedures a firm follows in attempting to collect accounts receivables. Collection Policy The steps that a company follows in ensuring timely payment of its accounts receivable. Collection policies vary by company. An example of the steps a company can takes involves a friendly phone call to make sure payment is made on time, followed by a firm phone call when a payment is late, followed by a threatening letter, and finally turning the client over to a collection agency. Companies may deviate from their collection policy for long-standing or otherwise trusted customer.
  • 10. Measures to asses collection a.Average collection period b.Ratio of bad debts to sales c.Aging of accounts receivable
  • 11. a. Average Collection period The approximate amount of time that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients
  • 12. b. Debt Ratio A financial ratio that measures the extent of a company’s or consumer’s leverage. The debt ratio is defined as the ratio of total debt to total assets, expressed in percentage, and can be interpreted as the proportion of a company’s assets that are financed by debt. The higher this ratio, the more leveraged the company and the greater its financial risk. In the consumer lending and mortgage businesses, debt ratio is defined as the ratio of total debt service obligations to gross annual income.
  • 13. A periodic report showing all outstanding receivable balances, broken down by customer and month due. c. Aging of accounts receivable The process of investigating a company's accounts receivable according to how long individual invoices have been outstanding. Analysts can use aging to identify bad debt and/or problems with the company's credit policy.
  • 14. Inventory Management Two basic costs associated with inventory
  • 15.
  • 16.
  • 17. The first step toward achieving minimum inventory costs is determine of the optimal order quantity. This quantity may be derived by use of the economic order quantity formula Where: S= sales O= the cost to process an order C annual carrying costs per unit in dollars
  • 18. Minimum total inventory costs will result if the assumptions of the model are applicable and the firm’s order size equals the economic ordering quantity.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24. End

Editor's Notes

  1. inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services.
  2. of the model