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ratio analysis

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44 Points Posted on 18 August 2018
the formula of debtor turnover ratio= credit sale/average debtor. but in module they apply this formula but they doesn't take average. which one we will apply for examination
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On 18 August 2018 at 13:54 Report
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practitioner
553 Points Posted on 18 August 2018

Better use average debtors fro calculation

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On 18 August 2018 at 14:06
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Student
200 Points Posted on 18 August 2018
Another also there debtor turnover ratio = credit sales/ closing debtor
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On 18 August 2018 at 15:56
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36 Points Posted on 20 August 2018
if it's possible to take average always take average
and if opening debtors isn't available use closing debtors as avg debtors on the assumption that opening and closing are equal
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On 20 August 2018 at 07:40


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