Discuss Some Difficulties When Comparing the Ratios of Similar Corporations

question 77

Essay

Discuss some difficulties when comparing the ratios of similar corporations from different countries.

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Definitions:

Credit Sales

Sales made by a business on credit, allowing customers to pay at a later date.

Receivables

Money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.

Collection Procedures

Established methods used by businesses to follow up on and collect unpaid debts from customers.

Accounts Receivable

Amounts owed to a company by its customers for goods or services that have been delivered but not yet paid for.