Accounts receivable turnover rate = main business income/average accounts receivable
Accounts receivable turnover rate is the ratio of main business income divided by average accounts receivable, which reflects the length of time it takes for a company to obtain the right of accounts receivable to recover the money and convert it into cash.
Represents the average number of times accounts receivable are converted into cash within one year. If the turnover rate is too low, it will affect the short-term solvency of enterprises.
Question 2: What does the turnover rate of accounts receivable mean? The meaning of accounts receivable turnover rate: the company's accounts receivable occupy an important position in current assets. If the company's accounts receivable can be recovered in time, the efficiency of the company's capital use can be greatly improved. Accounts receivable turnover rate is the ratio reflecting the company's accounts receivable turnover rate. It shows the average number of times a company's accounts receivable are converted into cash in a certain period of time. The turnover rate of accounts receivable expressed in time is the average recovery period, which is also called the average recovery period of accounts receivable or the average cash recovery period. It represents a company's right to obtain accounts receivable and the time it takes to recover the money and turn it into cash.
1. Accounts receivable turnover times, indicating the turnover times of accounts receivable within one year, or the sales income supported by 1 yuan accounts receivable investment.
2. The average collection period, also known as the cash collection period of accounts receivable, means the average number of days from the start of sales to the recovery of cash.
3. The ratio of accounts receivable to income can show that the sales income of 1 yuan needs accounts receivable investment.
Question 3: Popular understanding of accounts receivable turnover rate. This indicator indicates the speed at which accounts receivable are converted into cash! The sales revenue here should refer to the credit sales revenue, and then the accounts receivable are averaged and divided by 2 at the beginning and the end, because the accounts receivable are perennial? Cumulative number, so it is not one-to-one correspondence with the current sales revenue! This is a positive sign. If it is cash sales, it is assumed that the accounts receivable at the beginning of the period are zero, and the accounts receivable at the current period are all recovered, and the index tends to infinity. If it is changed to the number of days of collection of accounts receivable, it will tend to infinity, which means that the money will be recovered in very little time!
Question 4: What does it mean to improve the turnover rate of accounts receivable? Accounts receivable turnover rate is the ratio of sales revenue divided by average accounts receivable, that is, the average number of times accounts receivable are converted into cash in one year, which indicates the speed of accounts receivable flow. Generally speaking, the higher the turnover rate of accounts receivable, the better. The higher the turnover rate of accounts receivable, the faster the collection and the shorter the aging. Strong liquidity of assets and strong short-term solvency; Can reduce bad debt losses, etc. Choose a, c
Question 5: What does the turnover rate of accounts receivable mean? Hello, classmate, I'm glad to answer your question!
Also known as the turnover times of accounts receivable, it is the ratio of credit sales income to the average balance of accounts receivable. The first turnover of accounts receivable refers to the whole process from the occurrence of accounts receivable to the recovery. Its calculation formula is:
Accounts receivable turnover rate = net income from credit sales/average balance of accounts receivable
Fully understanding the meanings of various terms of uscpa can enhance your understanding of it and make it easier for you to pass the exam.
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Question 6: The only difference in the turnover rate of accounts receivable is whether the sales revenue includes cash sales revenue. We can understand the cash sales business as collecting money while selling on credit, so that the application formula of sales income including cash sales income also conforms to the meaning of accounts receivable turnover index.
Net sales revenue = net sales revenue-net credit sales revenue = sales revenue-sales revenue-cash sales revenue
In general, the higher the turnover rate of accounts receivable, the better. The higher the turnover rate, the faster the accounts can be recovered and the shorter the account age. Strong liquidity of assets and strong short-term solvency; Can reduce bad debt losses, etc.
Cash sales revenue has nothing to do with the turnover rate of accounts receivable.
Question 7: Basic concept of accounts receivable turnover rate The accounts receivable turnover rate formula can be divided into theory and application: 1. Theoretical formula: accounts receivable turnover rate = net income from credit sales x 100% average balance of accounts receivable = net income from current sales-cash sales x 100% (opening balance of accounts receivable+closing balance of accounts receivable)/2 average collection period = 360 accounts receivable turnover rate 2. Application formula: accounts receivable turnover rate = current net sales income (opening balance of accounts receivable+closing balance of accounts receivable) /2 average collection period = 360 accounts receivable turnover rate. The only difference between them is whether sales income includes cash sales income. We can understand the cash sales business as collecting money while selling on credit, so that the application formula of sales income including cash sales income also conforms to the meaning of accounts receivable turnover index. Net sales income = sales income-net credit income from sales receipts = sales income-sales receipts-cash sales income. Generally speaking, the higher the turnover rate of accounts receivable, the better, indicating that the payment is fast and the account age is short; Strong liquidity of assets and strong short-term solvency; Can reduce bad debt losses, etc. Definition: The average number of times accounts receivable are converted into cash during the specified analysis period. Formula: accounts receivable turnover rate = net income from credit sales/[(accounts receivable at the beginning+accounts receivable at the end) /2] Standard value set by the enterprise: 3 Meaning: the higher the accounts receivable turnover rate, the faster the recovery. On the contrary, it shows that the liquidity in accounts receivable is too sluggish, which affects the normal capital turnover and solvency. According to the analysis, the turnover rate of accounts receivable should be considered in combination with the operation mode of enterprises. Using this indicator can not reflect the actual situation in the following situations: first, enterprises that operate seasonally; Second, the installment settlement method is widely used; Third, a large number of sales settled in cash; Fourth, a large number of sales at the end of the year or a sharp decline in sales at the end of the year.
Question 8: What does the turnover rate of accounts receivable mean? Hello, classmate, I'm glad to answer your question!
Accounts receivable turnover rate, also known as accounts receivable turnover times, is the ratio of credit sales income to the average balance of accounts receivable. The first turnover of accounts receivable refers to the whole process from the occurrence of accounts receivable to the recovery.
I hope the answer from Gao Dun Online School can help you solve the problem. More accounting questions are welcome to be submitted to enterprises in Gao Dun.
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Question 9: What does the turnover rate of accounts receivable mean? The word you mentioned belongs to FRM vocabulary. Mastering FRM vocabulary can make you feel at home in FRM. The translation and meaning of this word are as follows: an accounting index to calculate the efficiency of a company in issuing credit and recovering debts.
Question 10: What does the turnover rate of accounts receivable mean? Hello, classmate, I'm glad to answer your question!
The word you said belongs to the vocabulary of futures industry. Mastering the vocabulary of futures industry can make you feel at home in the study of futures industry. The translation and meaning of this word are as follows: an accounting index to calculate the efficiency of a company in issuing credit and recovering debts.
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