Difference between revisions of "Accounts receivable turnover ratio"

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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.
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According to [[Managerial Accounting by Braun, Tietz (5th edition)]],
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:[[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 coursework==
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==Related lectures==
 
*[[Principles of Accounting]].  
 
*[[Principles of Accounting]].  
  
[[Category: Accounting]][[Category: Articles]]
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[[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

Related lectures