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our next topic is receivable management account receivable management why are we studying this where does it fit in the larger scheme of things you should ask yourself why you should get answer to your wise we are doing current assets management previously we learned how to manage cash now we are going to learn how to manage your receivables then you will learn how to manage your inventory in the next topic so we are learning how to manage our current assets first why do we need to have account receivables why do we sell goods on credit thats the first question you should ask yourself we sell goods on credit or services on credit as a as a competitive tool because others are doing it let us do it as well if we keep on selling on cash maybe we will have few customers but selling on credit means you will be able to attract more customers thats why we do it attract more customers we use account receivable also as a as a financing tool because if your customers delay making the payment