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Here we study about Accounts Payable Turnover Days. Previously we study about Accounts Payable Turnover Ratio . Accounts Payable Turnover Days Definition What is Account Payable Turnover Days? Basically, it is that ratio which shows that how many days the company takes to pay its short term debts to it suppliers. If the company pays its bills quickly, then it is a good sign for the liquidation of the company to main the smooth running of the business. This ratio is also known as Creditors Payment Period or Average Payment Period. If this ratio is low, then it is a good sign for the company as the company pays its bills in short period of time and on time to Suppliers. On the other hand, if this ratio is high, then it does not encourage investors or creditors to invest or give credit to that company. Accounts Payable Turnover Days Formula 365 / Accounts Payable Turnover Ratio Example: If Accounts Payable Turnover Ratio is 2...

We already discussed about Accounts Receivable Turnover Ratio in our previous article but here we study about Accounts Receivable Turnover Days. Accounts Receivable Turnover Days Definition What is Accounts Receivable Turnover Days? This ratio shows how many days in a year the company takes to collect debts due from its customers. The Accounts Receivable Turnover Ratio only shows how many times the company collects its debts from customers but fail to show the exact days in collecting dues from customers and hence we can easily the performance of the management of the company in receiving debts from its customers within the time frame or not. This ratio is also known as Debtors Turnover Ratio In Days or Average Collection Period or Days In Receivables. Accounts Receivable Turnover Days Formula   365 / Accounts Receivable Turnover Example Let say the company Accounts Receivable Turnover is 2....

Here we discuss the difference between Subledger and G eneral Ledger or Subsidiary Ledger and General Ledger. You may also be interested in “ D ifference Between General Journal and General Ledger ” 1. General Ledger is the master book of all the individual ledgers. 2. Subledger is the Subidiary Ledger which includes accounts of individuals, individuals persons or customers. 3. General Ledger is a wider term while Subledger is a narrow term. 4. General Ledger is the Control Account where all the transactions are finally totaled from the Subledger. 5. In subledger we record individuals records of customers or suppliers or sales or purchases, etc. and all these accounts are totaled at one place in Control Ledger or General Ledger or Master Ledger. 6. Here we discuss an example of A ccounts Receivable . Suppose, if the company has many customers and there are so many B usiness Transactions occurred on daily...

Here we discuss the difference between Accounts Receivable Turnover Ratio And Accounts Payable Ratio in tabular form. Difference Between Accounts Receivable Turnover Ratio / Debtors Turnover Ratio VS Accounts Payable Turnover Ratio / Creditors Turnover Ratio Differences   Accounts Receivable Turnover   Accounts Payable Turnover   Formula   It is the ratio of Cost Of Sales To Average Accounts Receivable       Or       It is the ratio of Net Credit Sales To Average Accounts Receivable   is the ratio of Cost of Sales to Average Accounts Payable       Or       It is the ratio of Net Credit Purchases To Average Accounts Payable       Measurement   It measures the Efficiency of Management in Collecting Short-Term Debts From Customers.   While, th...

Here we discuss about Accounts Payable Turnover Ratio. Previously we discuss about Accounts Receivable Turnover Ratio . You may also be interested in Accounts Payable Questions And Answers Accounts Payable Turnover Ratio Definition   What is Accounts Payable Turnover Ratio Account Payable Turnover is the ratio of Net Credit Purchases To Average Accounts Payable. This ratio shows how much efficient a company is to pay its bills to Suppliers within the Current Accounting Period. The more ratio is, the more the ability of company is to pay off its bills within the specified Accounting Period. Whether this ratio is good or  not it totally depends upon particular type of industry in which the company is operating its business. If the Ratio is decreasing From One Accounting Period to another, then it is a sign that the company fail to make prompt payment to suppliers due to lack of Cash . So, Investors and Creditors hesitate to invest or give credit to such company...

Here we discuss about Accounts Receivable Turnover. Previously we studied about Inventory Turnover . You may also be interested in Accounts Receivable Questions And Answers First of all, we know about what is Accounts Receivable Turnover Ratio. Note: If you don’t know about Accounts Receivable that is a Current Asset , then check out this article as well. Accounts Receivable Turnover Definition A nd   Accounts Receivable Turnover Meaning Accounts Receivable Turnover means that Accounts Receivable Converted Into Cash. So, this ratios shows that how efficient is the company to collect Debt due from its customers within the Current Accounting Period. In other words, how many times the company takes to receive Cash From its customers for the goods sold or services rendered in the Specified Accounting Period. This ratio is also known as Debtors Turnover Ratio In British Accounting Style. Mathematically, it is the ratio of Net Cre...

Here we discuss about Inventory Turnover or Inventory Turns Definition, its formula, example, analysis or interpretations and its importance or significance according To Accounting Standards. Previously we discuss about Inventory Definition , but here we discuss about Inventory Turnover or Inventory Turns Definition. If you don’t read this article, then kindly, read out this topic in order to better understand this particular topic. Inventory Turns Meaning Inventory Turns also known as Inventory Turnover or Inventory Turnover Ratio. It is a ratio of Cost of Goods Sold To Average Inventory. This ratio tells us that how many times the company sells its stock or inventory to it customers and replaces (Turnovers) during the Current Accounting Cycle. Inventory Turnover Ratio Formula Cost of Sales / Average Inventory Here Average Inventory = Opening Inventory + Closing Inventory / 2 Analysis / Interpretation: If th...

Here we discuss about Accounts Payable Journal Entries With Examples in the Light of Accounting.  Previously we studied about Accounts Receivable Journal Entries . You may also be interested in Account Receivable VS Account Payable First of all, we must know about Accounts Payable in order to better understand this topic. Accounts Payable Definition What is Accounts Payable and What does it mean in Accounting? Accounts Payable or Creditors are the amounts due by the business to outsiders or to whom the company pays the payments for the goods or services purchased on Credit basis. These are Current Liabilities For the company as the company pays the bills to them in near future. Creditors / Accounts Payable Accounting Journal Entries Here are following Accounting Journal Entries For Accounts Payable in the book of company: 1. When Business Purchase Goods On Credit From Suppliers or Creditors When goods are bought ...