accounts receivable (A/R) turnover
Definition
Ratio that shows the relationship between unpaid credit sales to total credit sales. It indicates, in general, the effectiveness (or lack of it) of a firm's credit policies and cash collection efforts. Formula: Outstanding accounts receivable (in an accounting period) ÷ credit sales revenue (in the same period).
accounts receivable (A/R) turnover is in the Accounting & Auditing, Banking, Commerce & Finance and Entrepreneurship, Management, & Leadership subjects.
accounts receivable (A/R) turnover appears in the definitions of the following terms: receivable turnover and activity ratios
This content can be found on the following page:
http://www.businessdictionary.com/definition/accounts-receivable-A-R-turnover.html
email to a friend
print this definition
cite this definition
link to this page
