A detailed analysis of Accounts Receivable to determine how long each account has been outstanding is called:
A) aging the Accounts Receivable.
B) aging the uncollectible accounts.
C) analyzing the Accounts Receivable.
D) taking a percentage of sales on account.

Question

Quizplus · Accepted Answer

Aging the Accounts Receivable involves breaking down the Accounts Receivable into categories based on the length of time the invoices have been outstanding. This helps in assessing the likelihood of collection and managing credit risk.

A Detailed Analysis of Accounts Receivable to Determine How Long