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foreign accounts receivable is also known as trade receivable accounts receivable is a current asset account in which a company records the amounts it has a right to collect from customers who received goods or services on credit explain accounts receivable cycle the accounts receivable cycle usually involves a straightforward process for alerting customers and clients about the money they owe the standard accounts receivable workflow includes the following steps the initial agreement or sales conversation to remind us at set intervals for outstanding invoices the creation of an invoice with a specific due date updating the accounting software to reflect payments that have been received what is purpose of accounts receivable turnover ratio the main purpose of the ratio is to measure the amount of time it takes for a company to collect their accounts receivables on an average basis it can be used to determine if a company is having difficulties collecting sales made on credit formula t
