One method to identify slow paying accounts is to
A) age the accounts receivable
B) determine the desired safety stock
C) calculate the inventory turnover
D) age the accounts payable

Question

​One method to identify slow paying accounts is to
A) ​age the accounts receivable
B) ​determine the desired safety stock
C) ​calculate the inventory turnover
D) ​age the accounts payable

Quizplus · Accepted Answer

Aging the accounts receivable involves analyzing the length of time it takes for customers to pay their outstanding invoices. This method helps to identify slow-paying accounts, which can then be targeted for follow-up and collections efforts. Option B is unrelated to accounts receivable, option C is related to inventory management, and option D involves analyzing accounts payable rather than accounts receivable.

​One Method to Identify Slow Paying Accounts Is to

One Method to Identify Slow Paying Accounts Is to