100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
D076 – Ratios unit test passed $9.80   Add to cart

Exam (elaborations)

D076 – Ratios unit test passed

 0 view  0 purchase
  • Course
  • Institution

AR Turnover - Is an activity/asset management ratio. Helps to identify how quickly these accounts receivables turn over during a given year. A rate of 12 indicated that the company is collecting once a month. If less or decreasing then it may indicate that the company is taking longer to collect....

[Show more]

Preview 1 out of 4  pages

  • February 3, 2024
  • 4
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers
avatar-seller
D076 – Ratios unit test passed
AR Turnover - ✔✔Is an activity/asset management ratio. Helps to identify how quickly these accounts
receivables turn over during a given year. A rate of 12 indicated that the company is collecting once a
month. If less or decreasing then it may indicate that the company is taking longer to collect.



Credit Sales/Accounts Receivable



Average Collection Period (ACP) - ✔✔Is an activity ratio. Convert AR turnover into a day count measure.



365/AR Turnover



Current Ratio - ✔✔Is a liquidity ratio. Short-term debt paying ability.



Current Assets/Current Liabilities



Debt Ratio - ✔✔Is a leverage ratio. Measures the proportion of the firm's assets financed with debt.



Total Liabilities/Total Assets



Debt-to-Equity Ratio - ✔✔Is a leverage ratio. Indicates how many dollars of debt the firm has for every
dollar of equity.



Total Liabilities/Total Owners' Equity



Fixed Asset Turnover (FAT) - ✔✔Is an activity ratio. Is similar to TAT, but indicates how many dollars in
sales the company generates per dollar of fixed assets (property, plant, equipment).

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller jessyqueen. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.80. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

79373 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$9.80
  • (0)
  Add to cart