Account Receible analysis

Account Receible analysis - asset. It is an important...

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Account Receible analysis: Accounts receivable Turnover ratio indicates how many times the accounts receivable have been collected during an accounting period. It is used to measure how efficient of a business operates. . The higher the turnover, the faster the business is collecting its receivables. A low or declining accounts receivable turnover indicates a collection problem from its customer. It can be used to determine if a company is having difficulties collecting sales made on creditAccounts receivable turnover measures how efficiently a company uses its
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Unformatted text preview: asset. It is an important indicator of a company's financial and operational performance. A high accounts receivable turnover indicates an efficient business operation or tight credit policies or a cash basis for the regular operation. Also, there is an opportunity cost of holding receivables for a longer period of time. Company should re-evaluate its credit policies to ensure timely receivable collections from its customers. measuring how efficiently a firm uses its assets....
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This note was uploaded on 11/24/2011 for the course FINANCE 340 taught by Professor White during the Fall '11 term at Maryland.

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