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Accounting Topic 20
|Age Analysis of Debtors
|A table that classifies debtors' accounts according to the age of their debt.
|The process of turning stock into sales, and then turning these sales into cash. It is calculated by adding together stock turnover and debtors turnover.
|Creditors Turnover Ratio
|A financial indicator that determines the average time taken by a firm to pay its creditors' accounts.
|Debtors Turnover Ratio
|A financial indicator that determines the average time taken by debtors to settle their accounts.
|Just in Time Ordering
|A method of purchasing inventory whereby the new order of goods arrives just before the business runs out of stock.
|Stock Turnover Ratio
|A financial indicator that determines the number of times stock has been turned into sales during a period. It also can be expressed as the number of days needed to turn stock over once.