FUND OF CORPORATE FINANCE LL W/ACCESS
FUND OF CORPORATE FINANCE LL W/ACCESS
11th Edition
ISBN: 9781260076752
Author: Ross
Publisher: MCG
bartleby

Videos

Textbook Question
Chapter 20, Problem 20.1CTF

What is the difference between the accounts receivable period and the cash collection period?

Expert Solution & Answer
Check Mark
Summary Introduction

To discuss: The accounts receivable period and accounts collection period.

Introduction:

Accounts receivable period determines the average days that receivables are outstanding.  It is also termed as days sales outstanding. Cash collection period can be determined by dividing the number of days in a year with average receivables turnover.

Explanation of Solution

The period that passes among the date of sales and the date the customer or buyer promises (mails) the payment for that specific sale.

Conclusion

One way to decrease the accounts receivable period is to speed up processing, clearing, and checking the mails.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Chapter 20 Solutions

FUND OF CORPORATE FINANCE LL W/ACCESS

Knowledge Booster
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
  • Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Principles of Accounting Volume 1
    Accounting
    ISBN:9781947172685
    Author:OpenStax
    Publisher:OpenStax College
    College Accounting (Book Only): A Career Approach
    Accounting
    ISBN:9781337280570
    Author:Scott, Cathy J.
    Publisher:South-Western College Pub
  • College Accounting, Chapters 1-27
    Accounting
    ISBN:9781337794756
    Author:HEINTZ, James A.
    Publisher:Cengage Learning,
    Century 21 Accounting General Journal
    Accounting
    ISBN:9781337680059
    Author:Gilbertson
    Publisher:Cengage
    Entrepreneurial Finance
    Finance
    ISBN:9781337635653
    Author:Leach
    Publisher:Cengage
  • Intermediate Accounting: Reporting And Analysis
    Accounting
    ISBN:9781337788281
    Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
    Publisher:Cengage Learning
    Principles of Accounting Volume 1
    Accounting
    ISBN:9781947172685
    Author:OpenStax
    Publisher:OpenStax College
    College Accounting (Book Only): A Career Approach
    Accounting
    ISBN:9781337280570
    Author:Scott, Cathy J.
    Publisher:South-Western College Pub
    College Accounting, Chapters 1-27
    Accounting
    ISBN:9781337794756
    Author:HEINTZ, James A.
    Publisher:Cengage Learning,
    Century 21 Accounting General Journal
    Accounting
    ISBN:9781337680059
    Author:Gilbertson
    Publisher:Cengage
    Entrepreneurial Finance
    Finance
    ISBN:9781337635653
    Author:Leach
    Publisher:Cengage
    7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY