0
This ratio looks at how long it takes for the business to get back the money it is owned. Average collection period for accounts receivable reveals the average number of days it takes for a company to collect its credit accounts from its customers. Therefore, a business prefers a shorter average settlement period. The number of days has been same in both the years.
What else can I help you with?
What are equivlent ratios?
when a number of ratios give the same answer after solving the ratios the ratios are said to be equivalent ratios
How are ratios classified?
Ratios are often classified using the following terms: profitability ratios (also known as operating ratios), liquidity ratios, and solvency ratios.
Ratios?
Ratios
What are the three types of ratios?
1 - Activity ratios 2 - Profitability ratios 3 - Liquidity ratios
What are 3 types of ratios?
1 - Activity Ratios 2 - Liquidity ratios 3 - Profitability ratios
What are the ratios that name the same comparison?
equivalent ratios are different ratios that name the same comparison
Importance of accounting ratios?
accounting ratio help management to predict the further income or the improvement in expenditure of an organisation. it guards management making the budget of the organisation.
Types of ratios?
1 - Actiivty raios 2 - turnover ratios 3 - Profitability ratios 4 - Liquidity Ratios
Are ratios percents?
No but percentages are ratios.
What is a similarity ratio?
similarity ratios are ratios in which both the ratios are equal to each other
What are assorted ratios?
A collection of different ratios.
How do you do Real World Problems Ratios?
How do you do ratios
