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

Prepare journal and adjusting entries, Prepare Journal and Adjusting Entrie...

Prepare Journal and Adjusting Entries I need assignment help on topic Prepare Journal and Adjusting Entries. Can you please suggest me the answer. The following two events o

Find out weighted average cost of capital, Mermaid Coffee Corporation (MCC)...

Mermaid Coffee Corporation (MCC) has 1,000,000 shares of stock currently trading at $42 per share. The company has issued 20,000 bonds, each with market value $928.59 and yield to

Important factors for expectation theory, Important Factors for Expectation...

Important Factors for Expectation Theory The following circumstances are essential for the expectation theory to hold. i) Ideal capital markets exists where there are many

Tests of term structure of interest rates theories, Tests of Term Structure...

Tests of Term Structure of Interest Rates Theories Various tests have been conducted mainly in USA and they show that all the three (3) theories have some validity and therefo

Financial analysis, Financial analysis: Financial analysis (also defin...

Financial analysis: Financial analysis (also defined to as financial statement analysis or accounting analysis or Analysis of finance) defines to an assessment of the viabilit

Costs of capital, a bond that has a 1000 per value and a contract or coupon...

a bond that has a 1000 per value and a contract or coupon interest rate of 12.8%. The bond is selling for a price of $1125 and will mature in 10 years. The firm''s tax rate is 34%

Effective financial management, Financial management is very important for ...

Financial management is very important for any organization as at the end what does matter is the money. An effective financial management is of high importance for ensuring the be

What is the impact of c on interest rates, Comments : The approved budget f...

Comments : The approved budget for 1997, reduced government spending in housing and urban development, health and human service, and education. Ignoring any other modifications, ho

Calculate the lump sum, Your daughter is a beginning freshman in high schoo...

Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her nex

Define the terms proprietorship, Briefly define the terms proprietorship, p...

Briefly define the terms proprietorship, partnership, and corporation. Ans: The term proprietorship is used as a business owned by one person. Two or more than two people wh

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