EFFECT OF CREDIT EVALUATION PROCESS ON ACCOUNT RECEIVABLES IN KENYA LITERATURE BUREAU (KLB)
Purpose of the study: The purpose of this study was to determine the effect of credit evaluation process on Account Receivables. This study sought to establish whether KLB has seen any positive change on the management of accounts receivables since it implemented the credit evaluation process Policy.
Methodology: The research design was descriptive in nature and employed the survey method. Purposive sampling technique was adopted and a sample size of 90 employees of Kenya Literature Bureau was selected to participate in the case study by completing the questionnaire. Data collected was analyzed through cross tabulation of data variables coded on the study’s questionnaire responses using SPSS computer package.
Results of the study: The study revealed that credit evaluation process play an important role toward proper management of accounts receivables.
Conclusion and policy recommendation: As a recommendation, even as organizations strive to increase their revenue through increased sales equal attention must be dedicated towards converting this revenue into cash. Sound credit policies firmly administered can facilitate this. Further to this, to be relevant and worthwhile, a credit policy must be current, not out of date. The final goal must be to accurately measure the effectiveness of credit policies.
Keyword: Credit evaluation process, Account Receivables and Kenya Literature Bureau
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