The Accounts Receivable Turnover ratio is a financial metric used to measure how effectively a company is managing and collecting its receivables.
The Average Collection Period is a key financial metric that measures the average number of days a company takes to collect payments from its credit customers.
Cash inflows are the cash receipts of a business, which include transactions such as sales of trading stock, receipts from debtors for credit sales, and disposals of fixed assets.
The receivables turnover ratio measures how efficiently a company collects its average accounts receivable over a specific period. It indicates the number of times average accounts receivable are collected in a year.
A sales account is used to record both cash and credit sales transactions that take place as a result of the sale of goods or services.
A Sales Day Book is a specialized subsidiary ledger used by businesses to record all the credit sales transactions before they are posted to the general ledger. This helps businesses maintain a detailed record of their sales and enhances the accuracy of their financial reporting.
The Sales Journal, also known as the Sales Day Book, is a specialized accounting ledger used to record credit sales transactions. It helps businesses maintain accurate and organized financial records, facilitating the tracking and analysis of accounts receivable.
The sold ledger, often referred to as the debtors' ledger, captures all transactions involving sales made on credit. It helps businesses keep track of amounts owed by customers and ensures proper management of accounts receivable.
Trade debtors, also known as trade receivables, represent amounts owed to a business by its customers for goods or services delivered or used but not yet paid for. It is a key component in the working capital of a business.
