Question

* feel free to use any source, website data
Microsoft: Check on the Microsoft's accounts receivables and look into the notes to find out what kind of information has been disclosed about accounts receivable in the notes.
Question: Focus your analysis on accounts receivable and write an essay about the quality of accounts receivable.

You may apply trend analysis, ratio analysis and any other related analytical tools you think is appropriate. (If the accounts receivable is minor or 0 in your case, please find out whether this is common in the industry and compare between several peer companies in the same industry and write an essay about your understanding of it.)

Answer 1

accounts receivable measures the money that customers owe to a business for goods or services already provided. Because the business expects the money in the future, accountants include accounts receivable as an asset on the business’s balance sheet

simplest methods available is the use of the accounts receivable-to-sales ratio. This ratio, which consists of the business’s accounts receivable divided by its sales, allows investors to ascertain the degree to which the business’s sales have not yet been paid for by customers at a particular point in time. A higher figure suggests that the business may have difficulty collecting payments from its customers.