Learn how to calculate a firm's percentage of credit sales using accounts receivable and sales data. Understand its impact on ...

In business, companies often have to wait for payments from customers—that period is generally known as the average collection period. Also known as the average collection period ratio and the ratio ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, ...

The collection period is the time that it takes for a business to convert balances from accounts receivable back into cash flow. This can apply to an individual transaction or to the business's ...

Cash flow is the heartbeat of any business. Without it, even profitable companies can quickly run into trouble. Accounts receivable (AR), the money owed to a business by customers, is a critical ...