Aging accounts receivable
A) shows which accounts are slow payers
B) requires a more lenient credit policy
C) increases the firm's cash
D) decreases the firm's inventory

Question

Aging accounts receivable​
A) ​shows which accounts are slow payers
B) ​requires a more lenient credit policy
C) ​increases the firm's cash
D) ​decreases the firm's inventory

Quizplus · Accepted Answer

Aging accounts receivable shows which accounts are slow payers by categorizing outstanding balances by the length of time they have been unpaid. This information helps businesses to identify and take actions on overdue accounts in a timely manner. It does not relate to credit policy, cash or inventory.

Aging Accounts Receivable​

Aging Accounts Receivable