- This topic has 3 replies, 2 voices, and was last updated 3 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Financial performance measurement.’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Financial performance measurement.
Dear John,
How are you?
I hope you are doing well,
I have a question regarding average collection period equals to (account receivable divided by credit sales) *365 days OK but why don’t we use collection amount rather than account receivable balance?
Is this ratio which you explained in your informative lecture take into consideration the balance of write off of receivables.
The last one is shall we take the gross amount of account receivable or net realizable value.
Thank you in advance.
The balance on accounts receivables is already after the removal of irrecoverable debts.
Thanks Dear,
You are welcome 🙂