A detailed analysis of the accounts receivable to determine the length of time each account has been outstanding is called
A) taking a percentage of sales on account.
B) aging the accounts receivable.
C) analyzing the accounts receivable.
D) aging the uncollectible accounts.

Question

Quizplus · Accepted Answer

Aging the accounts receivable involves analyzing each individual account to determine how long it has been outstanding and classifying it into different categories based on its age. This analysis provides valuable information for managing collections and assessing the overall health of the company's receivables. The other options do not involve a detailed analysis of individual accounts in the same way.

A Detailed Analysis of the Accounts Receivable to Determine the Length