Accounting Dictionary - Letter A

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounts receivable turnover
measures liquidity of an entity's accounts receivable by showing how many times average accounts receivable are collected during a period (e.g., a year). To calculate accounts receivable turnover, sales are divided by the average accounts receivable. The average accounts receivable can be determined by adding beginning accounts receivable to ending accounts receivable and dividing the result by two.
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