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What Does Receivables Turnover Ratio Mean?
An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.
Some companies' reports will only show sales - this can affect the ratio depending on the size of cash sales.
Investopedia explains Receivables Turnover Ratio
By maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient.
A low ratio implies the company should re-assess its credit policies in order to ensure the timely collection of imparted credit that is not earning interest for the firm.
From Riem Samnang
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∙ 12y ago
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Bill recievable and bill payable journal entries?
Entry of bill recievable is: Bill Recievable A/c dr. To debtor
What is the meaning of the word accounts recievable?
accounts in which money is owed.
Does collection on account receivable increase both cash and accounts recievable?
NO
An account recievable report summarizes sales by item true or false?
true
What will the journal entry of accounts recievable?
debit accounts receivablecredit sales revenue
Bill recievable and bill payable journal entries?
Entry of bill recievable is: Bill Recievable A/c dr. To debtor
How could an organization have a tax receivable?
An organization can have a tax recievable when it has paid a larger estimated tax the refund is put into recievable
What is average gross accounts receivable?
Average gross accounts recievable is the beginning balance for accounts recievable and the ending balance for A/R divided by two.
What is the meaning of the word accounts recievable?
accounts in which money is owed.
What is acceptable percentage of account recievable in small business?
About 3-5%
In quickbooks an accounts recievable report summarizes sales by items?
False
What is turnover intention?
What is turnover intention?
What is cross turnover?
What is cross turnover
An account recievable report summarizes sales by item true or false?
true
Does collection on account receivable increase both cash and accounts recievable?
NO
What will the journal entry of accounts recievable?
debit accounts receivablecredit sales revenue
What does a turnover mean?
It is a dish made by folding a piece of pastry over a filling for example apple turnover, blueberry turnover, grape turnover, ect.
