- Receivable Turnover Ratio An accounting measure used to quantify a firm's effectiveness in extending credit and success in collection of debts.
- For example, one dubious accounting measure being proposed here would mean that for every tree planted a country would receive a carbon credit, but for every tree felled they may not be debited.
- Money is the common denominator in which accounting measurements are made and summarized.
- The rules that govern how accountants measure, process, and communicate financial information fall under the heading GAAP, which stands for gernerally accepted accounting principles.
- As a traditional accounting measurement mode,historical cost mode makes accrual system and historical cost as measurement principles.