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Identify some measures (averages and ratios) useful in assessing accounts-receivable management?

User SNM
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Final answer:

Some useful measures in assessing accounts receivable management include the average collection period, accounts receivable turnover ratio, and aging of accounts receivable.

Step-by-step explanation:

A useful measure in assessing accounts receivable management is the average collection period. This ratio measures the average number of days it takes for a company to collect its accounts receivable. A shorter average collection period indicates that a company is collecting its receivables more quickly, which is generally seen as a positive sign of effective management.

Another measure is the accounts receivable turnover ratio. This ratio calculates how many times a company's accounts receivable are collected during a period. A higher turnover ratio indicates that a company is collecting its receivables more frequently, which is also viewed positively.

Finally, the aging of accounts receivable is a useful measure. By categorizing accounts receivable by the length of time they have been outstanding, a company can identify potential collection issues and take appropriate action.

User Matthew Sowders
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