Receivables Practice Exam

Receivables is the money owed to a business by its customers for goods or services provided on credit. Receivables are classified as assets in financial statements as they will be collected in 30, 60, or 90 days. Receivables management involves tracking outstanding invoices, timely collections, and minimizing bad debts. Ut helps maintain cash flow and liquidity for the company.

Certification in receivables certifies your skills and knowledge in managing a company’s receivables. This certification assess you in credit management, invoicing, collections, cash flow management, and timely recovery of payments.
Why is Receivables certification important?

• Demonstrates expertise in managing receivables and credit control processes
• Improves career opportunities in finance, accounting, and credit management roles
• Increases credibility with employers and enhances job security
• Validates knowledge of industry standards and best practices in receivables management
• Enhances skills in cash flow management, invoicing, and collections
• Helps reduce the risk of bad debts and improves organizational financial health
• Provides a competitive edge in roles requiring expertise in financial operations
• Aids in developing strong communication skills for managing customer relations regarding payments
• Improves understanding of accounting standards related to receivables and revenue recognition

Who should take the Receivables Exam?

• Accounts Receivable Specialist
• Credit Manager
• Collections Manager
• Financial Analyst
• Accounts Payable/Receivable Clerk
• Cash Flow Manager
• Billing Specialist
• Finance Manager
• Credit Risk Analyst
• Treasurer

Skills Evaluated

Candidates taking the certification exam on the Receivables is evaluated for the following skills:

• Receivables management,
• Invoicing and collections
• Credit policies and procedures
  
• Debt recovery
  
• Analyze financial data
• Payment risks
• Accounting standards
  
• Cash flow management
  
• Receivables management software
  
• Credit risk management
  
• Customer relationship management
  

Receivables Certification Course Outline
The course outline for Receivables certification is as below -

• Definition and types of receivables
• The role of receivables in financial management
• The receivables process cycle

• Establishing credit policies
• Risk assessment and creditworthiness evaluation
• Setting credit limits and terms

• Invoice generation and management
• Ensuring accuracy in billing
• Handling disputes and adjustments

• Techniques for effective debt collection
• Handling overdue accounts and payment reminders
• Negotiating payment plans and settlements

• Managing cash flow through effective receivables control
• Optimizing receivables to improve liquidity
• Impact of receivables on cash flow projections

• Revenue recognition and receivables
• Accounting for bad debts and provisions
• Receivables in financial statements

• Identifying and mitigating credit risk
• Strategies for reducing bad debts
• Credit insurance and its role in receivables management

• Use of receivables management software
• Automating invoicing and collections
• Data analysis tools for tracking and reporting receivables

• Managing customer relationships regarding payments
• Handling complaints and disputes related to receivables
• Effective communication strategies with customers

• Understanding collections laws and regulations
• The role of legal action in collections
• Compliance with payment terms and agreements