Related Words

Accounts Receivable Turnover: The ratio of net credit sales to average accounts receivable, which is a measure of how quickly customers pay their bills.

Number Of Days Sales In Receivables: A measure of the average number of days it takes to collect a credit sale: computed by dividing 365 days by the accounts receivable turnover.

Personal Accounts: These are the accounts of a business's customers and suppliers. They are usually held in the Sales and Purchase Ledgers.

Portfolio Turnover Rate: For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.

Pro-Forma Accounts (Pro-Forma Financial Statements): A set of accounts prepared before the accounts have been officially audited. Often done for internal purposes or to brief shareholders or the press.

Portfolio Turnover: Portfolio turnover is the rate at which a mutual fund manager buys or sells securities in a fund, or an individual investor buys and sells securities in a brokerage account. A rapid turnover . . . View Full Definition

Note Receivable: A claim against a debtor, evidenced by an unconditional written promise to pay a certain sum of money on or before a specified future date.

Memorandum Accounts: A name for the accounts held in a subsidiary ledger. Eg. the accounts in a sales ledger .

Medical Savings Accounts (MSA): Savings accounts designated for out-of-pocket medical expenses. In an MSA, employers and individuals are allowed to contribute to a savings account on a pre-tax basis and carry over the unus . . . View Full Definition

National Accounts: Large group accounts that have employees in more than one geographic area that are covered through a single national contract for health coverage. Contrast with large local groups.