Question
Trade Debts
Answer :
Word Count : 319
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Skip in 10
Trade debts or bills are receivables extended by small enterprises either to gain a niche in the market or to increase sales usually in difficult times such as business recession. Sufficiency of the extent of trade debts is usually judged by receivables turnover ratio also called collection ratio or book debts to sales ratio. Too high ratio would indicate early collection of book debts and too low would indicate extension of long credit periods. The question of how long, is long, is usually resolved by making an inter-firm and
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