Project Topic:

THE MANAGEMENT OF ACCOUNT RECEIVABLE AND ITS IMPACT ON THE PERFORMANCE OF BUSINESS ORGANIZATION IN NIGERIA. (A CASE STUDY OF ENUGU HOME OWNERSHIP COMPANY)

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 70 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   1,141 people found this useful

Project Department:

ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

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CHAPTER ONE

1.0     INTRODUCTION

1.1     BACKGROUND OF THE STUDY

Going by the advent of time, civilization, economic conditions, and business world, the world had known only a cash or barter economy. However, with development in business world, business is being transacted on credit basis.

In recent years, many business organization in Nigeria have experienced liquidity problems largely because of the effects of high rate of inflation. This has been necessitated by he various economic measures in 1982 to the structural adjustment programme (SAP). In 1991 and the present economic crisis inspired by the 419 syndrome. Because of this, if they becomes more imperative than ever to get money promptly from the debtors for the day today operations because of;

-              The uncertainty in the fluctuations of prices:

-              The subjective preference for present consumption over future consumption; and

-              The need to take advantage of the available investment opportunities.

However, if all these transactions were to be made on cash basis, various firms in terms of sales turnover.

Consumers and middlemen could equally be affected of all purchases made from companies are always on cash basis. Truly individuals or firms have preference for possession of a given amount of cash now, rather than having the same among some time in the future-time preference for many.

Yet, money (cash) is a scarce commodity which has wide range of application in the area of both human and material needs. Thus, this brings about the problem of effective management of the available cash resources through efficient receivable collection management.

Receivable represent claims, usually stated in definite financial terms, arising from the sale of goods, performance of services lending of money or other type of transaction which establishes a relationship whereby one party is indebted to another in an agreed term.

This column which result from the sale of goods or services or property and which may or may not be supported by a written note but which are not

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