[005]

NINJA Question –

So getting ready for my BEC retake coming in 3 weeks, came across a small difference between my materials.

NInja Audio, Says:

Average Collection Period = Average Receivables / Credit Sales per Day

CPAExcel Says:

Average Collection Period = (Days in Year X Average Accounts Receivables) / Credit Sales for Period

Also, just a quick question.

For Capital Turn over, is the ratio:

1. Annual Sales / Average Owner’s Equity

or

2. Sales / Investment

In my CPAExcel materials, it states the first one. However, on the problems, they use the second one.

Thanks a ton everyone !!! and Good luck studying.

BEC - ✔
REG - ✔
AUD - ✔
FAR - 11/29/14

CPAExcel, Ninja MCQs, and a sh*t ton of coffee

[F15hy]

A/R turnover = Credit sales / Average AR

A/R collection period = 365 / AR turnover

CA Candidate

B-79 (4th Attempt, finally killed you Nov 2013)
A-81 (3rd Attempt, Feb 2014) AND I AM DONE!!!!!
R-80 (1st Attempt, Feb 2013)
F-77 (2nd attempt, Jan 2014)

Becker, Becker Final Review, NINJA 10-Point Combo
($M.O.B$)

CA Ethics-92%

[F15hy]

A/R turnover = Credit sales / Average AR

A/R collection period = 365 / AR turnover

CA Candidate

B-79 (4th Attempt, finally killed you Nov 2013)
A-81 (3rd Attempt, Feb 2014) AND I AM DONE!!!!!
R-80 (1st Attempt, Feb 2013)
F-77 (2nd attempt, Jan 2014)

Becker, Becker Final Review, NINJA 10-Point Combo
($M.O.B$)

CA Ethics-92%

[infinity]

Average Collection Period is the average # of days it takes to collect payments from A/R

Formula: Average Accounts Receivable / Sales Per Day(360)

Capital Turnover formulas you have are the same:

Formula: sales revenue / investment in capital

BEC 74

Never give up, never surrender.

[infinity]

Average Collection Period is the average # of days it takes to collect payments from A/R

Formula: Average Accounts Receivable / Sales Per Day(360)

Capital Turnover formulas you have are the same:

Formula: sales revenue / investment in capital

BEC 74

Never give up, never surrender.

[005]

thank u!

BEC - ✔
REG - ✔
AUD - ✔
FAR - 11/29/14

CPAExcel, Ninja MCQs, and a sh*t ton of coffee

[005]

thank u!

BEC - ✔
REG - ✔
AUD - ✔
FAR - 11/29/14

CPAExcel, Ninja MCQs, and a sh*t ton of coffee

[Author]

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