Description
Abstract
The effects of effective accounts receivables management on the performance of a business organization. The management of accounts receivable is largely influenced by the credit policy and collection procedure of a firm. The specific objectives are to examine the effect of accounts receivable ratio on corporate profitability, to identify the effect of debt ratio on the profitability of food and beverage companies in Nigeria. The descriptive design method was used and the population of the staff is 100. Out of 40 copies questionnaire distributed in Abuja electricity distribution company only 30 copies were returned and used for the research. In the finding, the researcher realized that the effect of accounts receivable ratio on corporate profitability. We conclude that there exists some practices guiding extension of credit to customers, their weak implementation as evidenced by lack of formal credit extension policy, delayed or non-review of the policy manual, inconsistency on credit risk analysis pose a challenge to effective management of accounts receivables.
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