Chapter 8 & 9:

accounting

• When do cash equivalents mature
• Formal instruments of credit issued as proof of debt are known as
• What is net realizable value and how to calculate
• Calculate AR turnover ratio and what does the ratio tell you? Do you want a higher AR turnover or a lower? Why or why not?
• Calculate average collection period for AR in days and what does the ratio tell you? Do you want a higher AR turnover or a lower? Why or why not?