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Financial Terms | |
Accounts receivable turnover |
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Definition of Accounts receivable turnoverAccounts receivable turnoverThe ratio of net credit sales to average accounts receivable, a measure of how
Related Terms:accounts receivable turnover ratioA ratio computed by dividing annual Short-term solvency ratiosRatios used to judge the adequacy of liquid assets for meeting short-term Accounts‘Buckets’ within the ledger, part of the accounting system. Each account contains similar transactions (line items) that are used for the production of financial statements. Or commonly used as an abbreviation for financial statements. Accounts payableMoney owed to suppliers. ACCOUNTS PAYABLEAmounts a company owes to creditors. Accounts payableAmounts owed by the company for goods and services that have been received, but have not yet been paid for. Usually accounts payable involves the receipt of an invoice from the company providing the services or goods. accounts payableShort-term, non-interest-bearing liabilities of a business ![]() Accounts payableAcurrent liability on the balance sheet, representing short-term obligations Accounts PayableAmounts due to vendors for purchases on open account, that is, not evidenced Accounts Payable Days (A/P Days)The number of days it would take to pay the ending balance Accounts receivableMoney owed by customers. ACCOUNTS RECEIVABLEAmounts owed to a company by customers that it sold to on credit. Total accounts receivable are usually reduced by an allowance for doubtful accounts. Accounts receivableAmounts owed to the company, generally for sales that it has made. accounts receivableShort-term, non-interest-bearing debts owed to a Accounts receivableA current asset on the balance sheet, representing short-term Accounts ReceivableAmounts due from customers for sales on open account, not evidenced ![]() Accounts ReceivableMoney owed to a business for merchandise or services sold on open account. Accounts Receivable Days (A/R Days)The number of days it would take to collect the ending Allowance for doubtful accountsA contra account related to accounts receivable that represents the amounts that the company expects will not be collected. Allowance for Doubtful AccountsAn estimate of the uncollectible portion of accounts receivable Asset turnoverThe ratio of net sales to total assets. asset turnovera ratio measuring asset productivity and showing the number of sales dollars generated by each dollar of assets asset turnover ratioA broad-gauge ratio computed by dividing annual Average age of accounts receivableThe weighted-average age of all of the firm's outstanding invoices. Average collection period, or days' receivablesThe ratio of accounts receivables to sales, or the total Balance of Payments AccountsA statement of a country's transactions with other countries. Cash TurnoverThe number of cash cycles completed in one year. ![]() Chart of accountsA listing of all accounts used in the general ledger, usually sorted in Days in receivablesAverage collection period. Discounting of Accounts ReceivableShort-term financing in which accounts receivable are used as collateral to secure a loan. The lender does not buy the accounts receivable but simply uses them as collateral for the loan. Also called pledging of accounts receivable. Fixed asset turnover ratioThe ratio of sales to fixed assets. Fixed Assets Turnover RatioA measure of the utilization of a company's fixed assets to Inventory turnoverThe ratio of annual sales to average inventory which measures the speed that inventory INVENTORY TURNOVERThe number of times a company sold out and replaced its average stock of goods in a year. The formula is: Inventory turnoverThe number of times per year that an entire inventory or a Inventory TurnoverRatio of annual sales to inventory, which shows how many times the inventory of a firm is sold and replaced during an accounting period. inventory turnover ratioThe cost-of-goods-sold expense for a given Inventory Turnover RatioProvides a measure of how often a company's inventory is sold or IRA/Keogh accountsSpecial accounts where you can save and invest, and the taxes are deferred until money National Income and Product AccountsThe national accounting system that records economic activity such as GDP and related measures. NOTES RECEIVABLENotes receivable are promissory notes that the company has accepted from its debtors. Most promissory notes pay interest. Those that are due within a year are shown under “Current Assets.” Those that mature in more than a year would be listed under “Long-term Assets.” If a note is being Notes receivableAmounts owed to the company that have been formalized by a legal agreement called a note. NUMBER OF DAYS SALES IN RECEIVABLES(also called average collection period). The number of days of net sales that are tied up in credit sales (accounts receivable) that haven’t been collected yet. Permanent accountsThe accounts found on the Balance Sheet; these account balances are carried forward for the lifetime of the company. Portfolio turnover rateFor an investment company, an annualized rate found by dividing the lesser of Provision for Doubtful AccountsAn operating expense recorded when the allowance for Receivables balance fractionsThe percentage of a month's sales that remain uncollected (and part of Receivables turnover ratioTotal operating revenues divided by average receivables. Used to measure how Temporary accountsThe accounts found on the Income Statement and the Statement of Retained Earnings; these accounts are reduced to zero at the end of every accounting period. Total asset turnoverThe ratio of net sales to total assets. Total Asset Turnover RatioA measure of the utilization of all of a company's assets to TurnoverMutual Funds: A measure of trading activity during the previous year, expressed as a percentage of TurnoverThe business income or sales of goods and services. Unbilled Accounts ReceivableRevenue recognized under the percentage-of-completion Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |