Examlex
Which is a function of LH?
Average Collection Period
The average amount of time that a receivable is outstanding; calculated by dividing 365 days by the accounts receivable turnover.
Net Credit Sales
Total sales made on credit minus returns and allowances, indicating the actual sales revenue expected to be collected.
Vertical Analysis
A method of financial statement analysis in which each line item is listed as a percentage of a base figure, facilitating comparison across different periods.
Financial Statement
A formal record of the financial activities and position of a business, individual, or other entity, which includes the balance sheet, income statement, and statement of cash flows.
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