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Accounts receivable turnover forms a part of the ratio analysis of a firm. It is the ratio which quantifies the effectiveness of a firm’s policy with regards to credit extension and collection of debt. It measures the number of times, the credit is collected throughout an year. Mathematically...

Generally, each organization provides credit facility to its customers. In such cases, the money owed to the business by its customers (individual or corporation) on account of products/services that have been delivered or used is referred to as accounts receivable. Accounts Receivable is...

Not always does a company make upfront payments for the material (raw material etc.) it buys, accounts payable is essentially the amount owed by an organization for the purchase of raw materials etc. Accounts Payable can be found under the “Current Liabilities” heading of the Liabilities...

Accrued interest is basically an accounting phenomenon which occurs due to the difference in timing of cash flows and the recognition of interest. This can be commonly seen in bonds, as they pay interest after a fixed interval say, six months whereas the interest is accrued on a day-to-day...

Accounting, is the production of financial records about an organization. Accountancy generally produces financial statements that show in money terms the economic resources under the control of management; selecting information that is relevant and representing it faithfully. The principles of...