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Question
What is the denominator to be used while calculating Debtors Turnover Ratio?
Very Short Answer
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Solution
Average Debtors (or Receivables) is the denominator to be used while calculating Debtors Turnover Ratio, and the formula for it is written as:
`"Average Debtors"="Opening Debtors + Opening B/R + Closing Debtors + Closing B/R"/2`
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