Examples of average collection period in the following topics:
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- The receivables turnover ratio, also called the debtor's turnover ratio, is an accounting measure used to measure how effective a company is in extending credit as well as collecting debts.
- A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient; in contrast, a low ratio implies the company is not making the timely collection of credit.
- $\dfrac{\text{Trade receivables}}{\text{Credit sales} \cdot 365} = \text{Average collection period in days}$
- Finally, the average creditor payment period can be calculated as follows:
- $\dfrac{\text{Trade payables}}{\text{Credit purchases} \cdot 365} = \text{Average payment period in days}$
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- Days sales outstanding (also called DSO or days receivables) is a calculation used by a company to estimate their average collection period.
- In accountancy, days sales outstanding (also called DSO or days receivables) is a calculation used by a company to estimate their average collection period.
- The days sales outstanding figure is an index of the relationship between outstanding receivables and credit account sales achieved over a given period.
- The days sales outstanding analysis provides general information about the number of days on average that customers take to pay invoices.
- DSO ratio = accounts receivable / average sales per day, or
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- Cash Conversion Cycle - Inventory Conversion Period + Receivable Conversion Period - Payable Conversion Period
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- Companies use different methods to collect their outstanding receivables, like sending out reminders or employing a collection agency.
- The accounts receivable days is the average number of days that it takes a firm to collect on its sales.
- This is a financial ratio that measures the number of times, on average, receivables are collected during a period.
- Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed.
- There are many types of collection agencies.
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- All elements exist as a collection of isotopes.
- The word 'isotope' comes from the Greek 'isos' (meaning 'same') and 'topes' (meaning 'place') because the elements can occupy the same place on the periodic table while being different in subatomic construction.
- The average atomic mass of an element can be found on the periodic table, typically under the elemental symbol.
- Average atomic mass of chlorine = (0.7577 $\cdot$ 35 amu) + (0.2423 $\cdot$ 37 amu) = 35.48 amu
- Calculate the average atomic mass of an element given its isotopes and their natural abundance
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- CCC=# days between disbursing cash and collecting cash in connection with undertaking a discrete unit of operations.
- The Cash Conversion Cycle emerges as interval C→D (i.e., disbursing cash→collecting cash).
- The operating cycle emerges as interval A→D (i.e., owing cash→collecting cash)
- The receivables conversion period (or "Days sales outstanding") emerges as interval B→D (i.e., being owed cash→collecting cash)
- We estimate its LEVEL "during the period in question" as the average of its levels in the two balance sheets that surround the period: (Lt1+Lt2)/2.
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- It is also equal to the sum of average variable costs and average fixed costs.
- Average cost can be influenced by the time period for production (increasing production may be expensive or impossible in the short run).
- When the average cost declines, the marginal cost is less than the average cost.
- When the average cost increases, the marginal cost is greater than the average cost.
- When the average cost stays the same (is at a minimum or maximum), the marginal cost equals the average cost.
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- Under the Average Cost Method, It is assumed that the cost of inventory is based on the average cost of the goods available for sale during the period.
- To see how a company uses the weighted-average method to determine inventory costs using periodic inventory procedure, look at.
- Under the average cost method, it is assumed that the cost of inventory is based on the average cost of the goods available for sale during the period.
- On 12/31/12, sales for the period were 50 units and ending inventory is 150 units.
- Under periodic inventory procedure, a company determines the average cost at the end of the accounting period by dividing the total units purchased plus those in beginning inventory into total cost of goods available for sale.
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- The General Social Survey (GSS) is a sociological survey used to collect data on demographic characteristics and attitudes of residents of the United States.
- In 2010, the survey collected responses from 1,154 US residents.
- He collects a simple random sample of 64 patients and determines the time (in minutes) between when they checked in to the ER until they were first seen by a doctor.
- Daily consumer spending for the six-day period after Thanksgiving, spanning the Black Friday weekend and Cyber Monday, averaged $84.71.
- One of the variables collected on this survey is the age at first marriage.
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- They also collect data on how much company time employees spend on such non-business activities during March Madness.
- After calorie counts started to be displayed on menus, a nutritionist collected data on the number of calories consumed at this restaurant from a random sample of diners.
- You believe that this is an underestimate and decide to collect your own sample for a hypothesis test.
- Exercise 4.12 provides a 95% confidence interval for the average spending by American adults during the six-day period after Thanksgiving 2009: ($80.31, $89.11).
- (a) A local news anchor claims that the average spending during this period in 2009 was $100.