Keyword Analysis & Research: accounts receivable turnover ratio

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Frequently Asked Questions

What is the formula for accounts payable turnover?

The basic formula for measuring payable turnover is total purchases or costs of goods sold in a given period, divided by the average balance in accounts payable during that time.

What does receivables turnover ratio mean?

Definition: The accounts receivable turnover ratio is an efficiency ratio that measures how often receivables are collected during a period.

What is the formula for turnover in accounting?

The following formula is used to calculate this ratio: Asset Turnover = Sales or Revenues / Total Assets While calculating the value of total assets it is recommended to take average value, i.e. value at the beginning and end of accounting period divided by 2.


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