A technique that provides an analyst with the information concerning the proportion of each type of account that has been outstanding for a specified period of time is called ________.
A) credit analysis
B) credit scoring
C) aging of receivables
D) the economic order quantity model

Question

Quizplus · Accepted Answer

Aging of receivables is a technique used to provide an analyst with information on the proportion of each type of account (e.g. current, 30-60 days overdue, 60-90 days overdue, 90+ days overdue) that has been outstanding for a specified period of time. This information can help the analyst evaluate the company's creditworthiness and identify potential issues with collections. Credit analysis and credit scoring are related but different techniques that evaluate a borrower's creditworthiness, while the economic order quantity model is a technique used in inventory management.

A Technique That Provides an Analyst with the Information Concerning