Determination of an Accounts Receivables Cycle
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What is the accounts receivable cycle?
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Solution Summary
This formatted MS Word file contains calculations that can be used to determine a firm's accounts receivables cycle.
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Accounts Receivable Cycle
The accounts receivable cycle is a measurement of the length of time that it takes for a business to convert a sale into cash. In other words, how long does it take a business to collect on an account receivable?
The following diagram depicts the cycle:
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