EXCHANGE RATE EFFECTS Definition

Bookmark and Share

EXCHANGE RATE EFFECTS is the effect on any given currency as the rate of exchange changes providing either a gain or loss in value against other currencies.

Learn new Accounting Terms

SALES / RECEIVABLES (Receivables Turnover) is a ratio that measures the number of times trade Receivables turn over during the year. Generally, the higher the turnover of receivables, the shorter the time between sale and cash collection. It indicates how fast the company is getting paid for goods and services. Receivables turnover is best compared to the industry in order to determine if the company should improve their collection rate. The faster the receivables turnover, the better cash flow will look. Slow or below par turnover can be an indication of systemic problems within the company. It is best to compare receivables turnover with that of industry averages. Formula: Net Revenues / Accounts Receivable (net)

REVENUE PRINCIPLE is where revenues are recorded when they are earned regardless of timing of cash receipts.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.