Difference between revisions of "Accounts receivable turnover ratio"
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| − | [[Accounts receivable turnover ratio]] is a ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy. | + | [[Accounts receivable turnover ratio]] (or, simply, [[accounts receivable turnover]]) is a ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy. |
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According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | ||
:[[Accounts receivable turnover ratio]]. A ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy. | :[[Accounts receivable turnover ratio]]. A ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Accounts receivable turnover]]. Measures a company's ability to collect cash from credit customers. To compute accounts receivable turnover, divide net credit sales by average net accounts receivable. | ||
==Related concepts== | ==Related concepts== | ||
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]]. | *[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]]. | ||
| − | ==Related | + | ==Related lectures== |
*[[Principles of Accounting]]. | *[[Principles of Accounting]]. | ||
| − | [[Category: Accounting]][[Category: Articles]] | + | [[Category: International Accounting]][[Category: Articles]][[Category: Accounting]] |
Latest revision as of 15:17, 12 July 2020
Accounts receivable turnover ratio (or, simply, accounts receivable turnover) is a ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Accounts receivable turnover ratio. A ratio that indicates the number of times accounts receivable are converted to cash within a given period and the effectiveness of a company's credit policy.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Accounts receivable turnover. Measures a company's ability to collect cash from credit customers. To compute accounts receivable turnover, divide net credit sales by average net accounts receivable.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
