Important Definitions
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Modified on: Sat, 19 Jun, 2021 at 4:14 PM
Debtors - A debtor or borrower is a person or company who owes money
Creditors - A creditor or lender is a person or company to whom money is owing.
Sales - It refers to the revenues earned when a company sells its goods, products, merchandise, etc.
Average Collection Period - It is the amount of time it takes for a business to receive payments owed by its clients.
Collection Trend - It is the percentage change in the current month's collection with respect to the previous month's collection.
Sales Trend - It is the percentage change in the current month's sales with respect to the previous month's sales.
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