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The working-out of the method for calculation of the average period of payment of receivables

Available online: 25 May 2011

Subject Heading: Financial management

JEL Classification: 

The average period of payment of receivables, as a rule, is defined as the relation of product of average receivables and durations of the investigated period of time to gain size for the investigated period. This methodical approach gives only the calculation formula, but does not establish functional dependence of the average period of payment on indicators influencing it. The technique offered in article allows calculating the average period of payment of receivables of the enterprise according to its administrative account, to establish the factors influencing duration of the average payment period of receivables, and to reveal reserves for its reduction.

Keywords: receivables, turnover, period of payment

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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