If the accounts receivable turnover ratio is decreasing, what will be happening to the average collection period?
Question:
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 46% (13 reviews)
If the accounts receivable turnover ratio is decreasing acco...View the full answer
Answered By
Umber Talat
I am providing full time mentoring and tutoring services in Business Finance, Contemporary issue in Global Economy, Quantitative Techniques, Principles of Marketing, strategic marketing, International Marketing, Organizational Behavior (OB), Consumer Behavior, Sales Force Management, Strategic Brand Management, Services Marketing, Integrated Marketing Communication (IMC), Principles of Management, General Management, Strategic Management, Small and Medium Enterprise Management, Innovation Management, Change Management, Knowledge Management, Strategic Planning, Operations Management, Supply Chain Management, Logistics Management, Inventory management, Total Quality Management (TQM), Productions Management, Project Management, Production Planning, Human Resource Management (HRM), Human Resource Development, Strategic HRM, Organizational Planning, Performance and Compensation Management, Recruitment and Selection, Organizational Development, Global Issues in Human Resource Management, Retail Marketing, Entrepreneurship, Entrepreneurial Marketing, International Business, Research Methods in Business, Business Communication, Business Ethics.
4.70+
158+ Reviews
236+ Question Solved
Related Book For
Foundations of Financial Management
ISBN: 978-1259194078
15th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
Question Posted:
Students also viewed these Accounting questions
-
What does the accounts receivable turnover ratio measure and how is it calculated?
-
The accounts receivable turnover ratio is 8.14, and average net receivables during the period are $400,000.What is the amount of net credit sales for the period?
-
The accounts receivable turnover ratio is 8.14, and average net receivables during the period are $400,000. What is the amount of net credit sales for the period?
-
Motion of Electrons in a Magnetic Field An electron of mass m and charge -e is moving through a uniform magnetic field B = (B, 0, 0) in vacuum. (Figure 1)At the origin, it has velocity (Uz, Vy, 0),...
-
As its name suggests, West Fraser Timber Co. Ltd. is a Canadian forest products company that produces lumber, wood chips, fibreboard, plywood, pulp, linerboard, kraft paper, and newsprint. Using West...
-
Theory of constraints, throughput contribution, relevant costs. Columbia Industries manufactures electronic testing equipment. Columbia also installs the equipment at the cus tomers site and ensures...
-
24. a. Compute the convexity of a 3-year bond paying annual coupons of 4.5% and selling at par. b. Compute the convexity of a 3-year 4.5% coupon bond that makes semiannual coupon payments and that...
-
Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2017. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. For 2019, he reported die...
-
Case study 2 Online Assignment Instructions Case Study 2 Online Assignment: 1. List, describe and provide an example of 3 Government Objectives when it comes to Labour Relations 2. List, describe,...
-
Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" and small, standardized delivery boxes (which provides a 20%...
-
What are the three primary sections of the statement of cash flows? In what section would the payment of a cash dividend be shown?
-
What advantage does the fixed charge coverage ratio offer over simply using times interest earned?
-
What are the tradeoffs between profitability, risk, and control that should be considered when choosing between debt and equity financing?
-
Construct a 90% confidence interval for the population standard deviation o at Bank B. Bank B 4.2 5.4 5.9 6.1 6.6 7.7 7.7 8.6 9.3 10.0
-
Jamila Traders has a head office in Nanyuki and an autonomous branch in Thika. The trial balances of the head office and the branch as at 30 September 2014 were as follows: Head office Sh. Sh. Thika...
-
Poll Results in the Media USA Today provided results from a survey of 1144 Americans who were asked if they approve of Brett Kavanaugh as the choice for Supreme Court justice. 51% of the respondents...
-
ROI analysis using the DuPont model a. Firm A has a margin of 7%, sales of $980,000, and ROI of 19.6%. Calculate the firm's average total assets. b. Firm B has net income of $259,200, turnover of...
-
The test statistic of z = - 2.93 is obtained when testing the claim that p < 2/ 3. This is a left-tailed test. Using a 0.01 significance level, complete parts (a) and (b). a. Find the critical...
-
What could professional accountants have done to prevent the development of the credibility gap and the expectations gap?
-
Find the area of the surface generated by revolving the para- metric curve x = cos 1, y = sin? 1 (0 < I sa/2) about the y-axis.
-
Is it possible separate positive and negative charges unequally in two objects by a charge-separating method or by any mechanical equipment?
-
Propulsion Labs will acquire new equipment that falls under the five-year MACRS category. The cost is $200,000. If the equipment is purchased, the following earnings before depreciation and taxes...
-
Wildcat Oil Company was set up to take large risks and is willing to take the greatest risk possible. Richmond Construction Company is more typical of the average corporation and is risk-averse. a....
-
Micro Systems is evaluating a $50,000 project with the following cash flows. Years Cash Flows 1 ................................$ 9,000 2 ................................12,000 3...
-
Read the following and then answer the questions below:September 12: A Brisbane business offers by letter to sell 500 tyres to a New Zealand company. The Brisbane company does not specify a method of...
-
Fred returns home from work one day to discover his house surrounded by police. His wife is being held hostage and threatened by her captor. Fred pleads with the police to rescue her and offers...
-
Would like you to revisit one of these. Consideration must be clear and measurable.if you can't measure it then how can you show it has / has not been done?How can you sue someone for breach of...
Study smarter with the SolutionInn App