Empirical Studies Of The Moderate Scale Of Accounts Rreceivable

Along with the market competition intensifies, enterprises have adopted the way of credit sales in order to increase market share, and the accounts receivable is the result of the credit sales. However, due to the late development of credit sales in our country, the credit sales mechanism is not perfect, resulting in some enterprises'blindly credit sales. Combined with low levels of accounts receivable management, a large number of bad debts are formed, which have affected the cash flow of enterprises and brought financial risk and even a financial crisis.So, what's the right size of accounts receivable? What scale of the accounts receivable should occupy? What's the perfect proportion that can not only increase the profit of companies but also form a good cash flow?This article is to start discourse along this logic, attempt to put forward a basic analysis framework based on the results of previous studies in order to solve the current problem in China which refers to the lack of pre-management to accounts receivable. The first part of the text clarifies the study's background, significance and theoretical basis. In addition, some core concepts such as what is an moderate size and the moderate size of accounts receivable are defined; the second part reviews the research achievements about accounts receivable at home and abroad; the third part analyzes formation and influence factors of accounts receivable, and also define accounts receivable; the fourth part shows the research methods of survival of the fittest, second arithmetic average, and descriptive statistical analysis; the fifth part defines variables, and shows theory and principle of variables; the sixth part discusses the principle and scope of the samples; the seventh part, taking the stock listed household appliances industry as an example, obtains the ratio of moderate scale respectively by survival of the fittest and second arithmetic average, and finally draw research results including the ratios of accounts receivable to current assets, to total assets and the moderate scale between accounts receivable and accounts payable. This paper presents that evaluating moderate scale of accounts receivable should abide by two standard. Firstly, moderate scale of accounts receivable should help enterprises to increase market share. Secondly, it should make profits at high quality (evaluation criterion of profit cash ratio is greater than 1). Based on these two evaluation standard, this paper, taking a large number of data of household appliances listed companies from 2001-2009 as examples, introduces the survival of the fittest in accounting research, obtains moderate scale by survival of the fittest(This guarantee is the market share) ,reaches industrial standard by second arithmetic average(This guarantee is profit quality), makes the intersection of them by descriptive statistical analysis ,and finishes up with moderate scale about accounts receivable of appliances listed company in our country.At last, the paper concludes that industries and enterprises can use the moderate scale ratio and the amount of liquid assets and total assets of each period to determine the range interval of credit sales. On this basis, the dynamic budget mechanism which is under the control of accounts receivable's moderate scale can be established. This way, credit risk of accounts receivable can be actively prevented.This paper uses empirical research, combination of quantitative analysis and qualitative analysis as the study methods. Conclusions are drawn through content analysis, observation, induction and structural analysis.