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Accounts Receivable Turnover
A financial ratio that measures how effectively a company collects on its credit sales by dividing total credit sales by the average accounts receivable.
Current Asset
An asset that is expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.
Eighteen Months
A period of time equal to one and a half years.
Note Receivable
A written promise that someone will pay a business a specific sum of money on a specified date or on demand.
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