A turnover ratio of 4 indicates that your business collects average receivables four times per year or once per quarter. If your credit policy requires payment within 30 days, you might want your ratio to be closer to 12. Yes, …

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To keep track of the cash flow (movement of money), this has to be recorded in the accounting books (bookkeeping is an integral part of healthy business activity). This legal claim that the customers will pay for the product, is …

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