What is the difference between the percent-of-receivables, Finance Basics

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What is the difference between the percent-of-receivables

Question: 1. What is the difference between the percent-of-receivables and aging-of-receivables methods?

2. What is the formula to compute interest on a note receivable?

3. Why must companies record accrued interest revenue at the end of the accounting period?

4. How is the acid-test ratio calculated, and what does it signify?

5. What does the accounts receivable turnover ratio measure, and how is it calculated?

6. What does the days' sales in receivables indicate, and how is it calculated?

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