Accounts Payable

Accounts payable is regarded as source of free credit, since either goods have been supplied or services rendered but payment will be made on later date. Where organizations have financial constrains to procure raw material or pay business services, can utilize accounts payable as source of external sources of finance to improve production line. The objective of  the  study was  to established the effect of  accounts payable on the profitability of agricultural firms  in Kenya; A case study  of  James  Finlay’s in Kericho County. Descriptive research design was employed to describe the effect accounts payable has on profitability of firms. Target population comprised of respondents from James Finlay’s located in Kericho County. The study used primary data collected through questionnaires. Data was analyzed by descriptive statistics. Correlation and regression analysis was adopted to establish the relationship between accounts payable and profitability. ANOVA F statistics used to establish goodness of fit using level of significance in the regression model. The study revealed that accounts payable has negative effect on the profitability of agricultural firms. The study recommended the company to retain high level of account payable since is one of the cheapest source of finance hence should be maximized to improve profitability and also to reduce the cost of finance.

The best working capital management policy is to strike the balance in the investment of assets. Excessive investment in any
component of working capital will tie capital hence impairment return of firms on the other hand inadequate working capital
will render the company insolvency which will hinder smooth running of companies. The objective of the study is to carry
out analysis on studies on working capital management practices and compare the results from different industries from
east Africa countries. Major components of working capital studied were accounts receivable, accounts payable, cash
conversion cycle, debt ratio, average collection period, average inventory period, and average payable period. Studies adopted
ROA, ROE and GOP as Measure of financial performance. To find out the association between working capital management
and financial performance Pearson correlation analysis and multiple regressions was adopted. Result from the study found
mixed findings some studies found positive correlation with working capital management while other revealed negative. Study
concluded working capital management had significant impact on financial performance of firms under study. Study
recommended firms to reduce the accounts receivable period while extending accounts payable period. Further recommended
was given for firms to keep inventory at reasonable level and shorten the cash conversion period to gain meaningful
profitability.

This thesis focused on the impact of cash conversion cycle on profitability of FMCG sector in Pakistan .FMCG sector was bifurcated into small medium and large firms relative to their asset base in order to avoid or remove any kind of biasness in analysis of the data .Return on assets was used as dependent variable and independent variables included cash conversion cycle , average inventory period , average receivable period , and average payable period.Annual data was taken from financial statements of the 14 companies. Panel data from 2008-2017 was used for analysis. Panel regression method was employed in order to analyze the data.Result revealed that CCC and its components do not have any significant impact on profitability of small firms , whereas in medium sized firms, only CCC had significant and inverse impact on profit, rest of the variables found to be insignificant, and in large FMCG firms only average inventory period and CCC both had negative and significant impact on profitability.

The study examines the effect of working capital management on firm profitability in Africa. In doing, we employed data from the mining sector of Africa. Data was collected from financial statements of a sample of 33 mining companies over the period (2013-2015) with the total of 93 observations. Data was analysed on quantitative basis using descriptive statistics, followed by the correlation analysis, thereafter, the panel least squares method was used to estimate the specified model

Working capital is an important component in every business despite the nature and size. Working capital management assists
managers to ensure that there is no mismatch between cash receipts and disbursements as this can disrupt operation of a
company. Having liquid cash does not imply that the company is profitable neither does be profitable imply that a company is
liquid. Hence, working capital management ensures that there is a tradeoff between profitability and liquidity. The
supermarkets play an important part in the economy of the country as they contribute both directly and indirectly to the GDP
of the country. They interact directly with the major players and are also a source of employment for both skilled and
unskilled employees. Due to this interaction, their performance has a ripple effect since it will directly or indirectly affect
them. The study sought to examine the effect of working capital management on the financial performance of supermarkets in
Mombasa County. Independent variables identified for the study were cash management, accounts receivables management,
accounts payable management and inventory management while financial performance was the dependable variable.
Descriptive research design was adopted and a sample size of 124 respondents was identified from whom primary data was to
be collected but only 73 responded. Questionnaires were administered to collect the primary data which was analyzed with the
help of SPSS. Descriptive statistics; Mean and standard deviation, and inferential statistics; correlation analysis and
regression analysis were used to determine the relationship between the dependent variable (financial performance) and the
independent variables (cash management, accounts receivables management, accounts payables management and inventory
management). The results from the study indicated that working capital management affects financial performance of
supermarkets in Mombasa County. Cash management, accounts payables management and inventory management had a
positive and significant relationship to financial performance while accounts receivables had a negative and insignificant
relationship. The study recommended that all variables should be effectively and efficiently managed to ensure that those
which positively affect financial performance are improved and those which negatively affected financial performance are
limited.

Public procurement is a key aspect of public administration that links the public financial system with economic and social outcomes, and as such is a major determinant of the quality of community services and infrastructure, and the effectiveness of government. This function cuts across almost all areas of planning, program management, and budgeting. However, while public procurement is often a priority, it has become less certain as to how this should be managed to deliver these efficiency and productivity outcomes. The governance structure for public procurement has traditionally been procedures-based, with a focus on integrity in the selection process. Procurement procedures have been reasonably simple and largely define the issues only in terms of whether the value of the transaction is expected to be small (less than US$20,000), medium (up to US$100,000) or large. The characteristics of the supply markets themselves are generally not acknowledged. These procurement procedures ...

This paper presents a case that focuses on the Corporate Accounts Payable Department of a major corporation with the objective of reinforcing that organizations need business resumption plans for all units. Textbooks tend to focus on the information technology area which may lead students to overlook the need for business resumption planning in other areas. Students were asked to complete a set of case questions based on the case material. Comparisons of students responses to a questionnaire regarding business resumption planning showed that students who completed the case demonstrated a stronger understanding of the topic than those who did not.

This paper deals with the transfer of knowledge on invoice document layout and extraction strategies, collected by users of the invoice recognition software smartFIX over several years of productive use, to other user's systems. The results of a project analyzing this 'treasure' of knowledge and putting it to use in the smartFIX system are presented. The evaluation shows that this transfer of knowledge using state-of-the-art techniques in transfer learning achieves significantly higher initial recognition rates than the unaugmented system, delivering instant economic advantages by reducing accountant personnel workload.

In this paper, we test for a potential target accounts payable ratio for a panel of listed Jordanian firms over the period 2000–2014, and measure the speed of adjustment toward that target. We apply a partial adjustment model using System-Generalised Method of Moments. We find that Jordanian firms have a target accounts payable ratio and more than 65% of the deviation from target is closed within a year. We find a positive impact of growth, positive growth, and supply of credit on the accounts payable ratio. Furthermore, large firms use less trade credit to finance their purchases.

This paper deals with the transfer of knowledge on invoice document layout and extraction strategies, collected by users of the invoice recognition software smartFIX over several years of productive use, to other user's systems. The results of a project analyzing this 'treasure' of knowledge and putting it to use in the smartFIX system are presented. The evaluation shows that this transfer of knowledge using state-of-the-art techniques in transfer learning achieves significantly higher initial recognition rates than the unaugmented system, delivering instant economic advantages by reducing accountant personnel workload.