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Q: Why is the annual percentage rate an ineffective measure for comparing accounts?
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What is the key consideration for success in the management of accounts receivable?

The key is the number of days in which the credit is collected by the company. Bad debt percentage alone is not the ultimate measure, it is a combination of different credit control percentages along with the time within which debts are collected that matter.


Explain why the bad debt percentage or any similar credit-control percentage is not the ultimate measure of success in the management of account receivable What is the key consideration?

The key is the number of days in which the credit is collected by the company. Bad debt percentage alone is not the ultimate measure, it is a combination of different credit control percentages along with the time within which debts are collected that matter.


Why is the bad debt percentage or any similar credit-control percentage is not the ultimate measure of success in the management of account receivable and what is the key consideration?

The key consideration is profitable income. For every bad debt percentage there is possible liquid income or assets. After excluding revolving credits and living expenses there can be an available amount for collateral.


What is accounts payable?

Account Payable is a major part of Accounti g cycle that pertains to obligations arising from the promise to pay later on in connection with the purchases and or services rendered, and in more technical sense, the A/P is a measure of time for making cash outflows into cash inflows.


What is Percentage of completion method in construction company?

An accounting method used for long-term construction contracts that recognizes revenues and related expenses before they occur based on an input or output measure of the earning process.

Related questions

Why are most particle collisions ineffective?

comparing to an atom , the particles of it are very very small , their collision may be effective inside that atom but we could not measure the effectiveness since it takes place for a very very small time (fempto seconds) than the size of electron. Hence we think that the particle collisions are ineffective .


What measure is used when comparing wages?

interval


When you are comparing the energy of different waves you measure what of the waves?

Amplitude.


What percentage of their conscious mind do human use?

Humans use approximately 10% of their brain capacity at any given time. The idea that we only use 10% of our brain is a myth. Our brains are constantly active, even when we are not consciously aware of it.


How many btu are in an hour?

You are comparing apples and oranges. BTU's are a measure of heating capacity and hours are a measure of time.


How could you measure electrolytes in drinks?

You can measure electrolytes in drinks by first checking the temperature and then comparing it to the usage of electrolytes.


How is a lever balance used to measure mass?

By comparing it to the weight of another mass.


What percentage is a solution containing 150 mg of active substance in 20 ml?

A percentage measure is appropriate only when both measures are in the same units (or their multiples). Milligrams are a measure of mass while millilitres are a measure of volume. The two measure different things and they cannot be converted into a percentage.


How do you find the percentage of friendship on paper?

You cannot measure friendship in percentage terms!


What are the main summary statements of the balance of payments accounts and what do they measure?

you suck


Why does a beam balance measure mass instead of weight?

Weight is a measure of gravitational attraction. Mass is a measure of the amount of matter in something. Because a balance compares two or more bodies (the item you want to weigh and balace weights), it is comparing amounts of matter - it is comparing masses although it is also comparing weights. You can use a balance in space, or anywhere, and get the same answers. You do not if you use something like a spring balance, which measures weight.


How do you calibrate a hygrometer?

Hygrometer is an istrument to measure moisture content in air, By comparing with master instruments we can calibrate this.