Debtors or accounts receiver turnover, Finance Basics

Assignment Help:

Debtors or Accounts Receiver Turnover

Formula is as follow:

Debtors/accounts receiver turnover  = Annual credit sales/Average debtor

The ratio signify the number of times/frequency along with that credit customers or debtors were turned into sale that is the number of times they approach to buy on credit per year after paying their dues to the firm.

The higher the debtor's turnover the better the firm signifying that customers came to buy on credit many times hence they paid within a short duration.


Related Discussions:- Debtors or accounts receiver turnover

Monetary control operations, 'The most significant function of any Central ...

'The most significant function of any Central Bank is to undertake monetary control operations'.   Discuss with specific reference to the Bank of England, highlighting its current

Determine the utility of the entrepreneur, Suppose an entrepreneur owns a f...

Suppose an entrepreneur owns a firm which has two production opportunities. Technology A generates an output (net profit) of 10 in state 1, an output of 20 in state 2, and an outpu

Example of asset based valuation, Example of Asset Based Valuation Ext...

Example of Asset Based Valuation Extracted information from the books of Kent Limited.   Current liabilities Bank overdraft    Sh. 300,000

Journal entries, Sam start business with his savings $20000, a gift from hi...

Sam start business with his savings $20000, a gift from his parents $10000 and a personal loan from his friends of $5000. All money is deposited in a bank account.

Computation of payback period method, Computation of Payback Period Method ...

Computation of Payback Period Method 1. Under uniform annual incremental cash inflows - if the venture or an asset generates uniform cash inflows then the payback period (PB

What would be the expected return of the portfolio, A Ltd.'s share gives a ...

A Ltd.'s share gives a return of 20% and B Ltd.'s share gives 32% return. Mr. Gotha invested 25% in A Ltd.'s share and 75% of B Ltd.'s shares. What would be the expected return of

Circle the new equilibrium if there is an increase in price, a.  In the acc...

a.  In the accompanying diagram (which represents the market for chocolate candy bars), the initial equilibrium is at the intersection of S1 and D1. Circle the new equilibrium if t

Specific cost, I need a report on Specific Cost. Can you please assist me f...

I need a report on Specific Cost. Can you please assist me for Specific Cost report for about 2500 words?

Challenges to finance manager., Ask question #Minimum what are the challeng...

Ask question #Minimum what are the challenges that a finance manager may face?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd