Receivable/payable Days Flashcards
1
Q
Trade receivables
A
Amounts owed to a business from customers
2
Q
Trade payables
A
Amounts owed by a business to suppliers and others
3
Q
Trade receivable days
A
The average length of time taken for customers to pay amounts owed
4
Q
Trade payable days
A
The average length of time taken for businesses to pay amounts owed
5
Q
receivable days calculation
A
Trade receivables/ revenue x 365
6
Q
Payable days calculation
A
Trade payables/ cost of sales x 365
