The Choice Of Bad Debit Reserve And Achievement Of Management

The further development of market economy has not only provided a broad space for the enterprise,but also intensified the competition between enterprises.In order to survive and seek development in this environment,the enterprise should not only sell products,but more important for itself is to collect the accounts receivable in time,to ensure sufficient cash flow in its operations.Bad debt losses is the management cost happens in the enterprise's operation.According to relevant regulations,'the enterprise should estimate the possibility of bad debts and the net realizable value of accounts receivable,and the bad debt losses should be classified as current expense.Therefore,for any serious economic consequences caused by bad debts,it's particularly important to analyze the impact the bad debts have on the enterprise management.Based on the understanding of the relationship between the provision for bad debt and accounts receivable,this paper analyzed the necessity and importance of provision for bad debt,and used the data of listed companies in the textile industry to analyze the effects of bad policy choice for the enterprise operating performance.Based on the data of the specific listed companies,this paper analyzed and summarized the bad debts provision ratio and the way of provision for bad debt and drew the conclusion of robustness.With specific companies as sample data,this paper analyzed the influence of robustness for the enterprise operating performance of listed companies,thus it concluded the overall evaluation and influence on operating performance caused by the related provision for bad debts policy,and then made some comments and suggestions.Finally,this paper discussed the problems of financial decision-making existingin enterprises,and then put forwards some corresponding solution and the relevant evaluation of bad policy choice.