In a company many ratios are calculated describe the ratios which are related with the accounts receivable Debtors. (a) Describe the Account Receivable Turnover ratio and why it is calculated? Write

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In a company many ratios are calculated describe the ratios which are related with the accounts receivable Debtors.

(a) Describe the Account Receivable Turnover ratio and why it is calculated?  Write the formula also.

(b) Describe the Average Collection Period with formula.

(c) Discussed the importance Account Receivable and Turnover ratio Average Collection Period for the company.

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