What is the single most important indicator used to identify impaired accounts receivable?
A) the customer's payment history
B) the age of the accounts
C) credit reports and references
D) industry in which the company operates

Question

Quizplus · Accepted Answer

The age of the accounts receivable is the most important indicator used to identify impaired accounts receivable. The longer an account is past due, the higher the likelihood of payment problems. Aged accounts receivable should be monitored closely and appropriate collection action should be taken to avoid them becoming bad debt. Payment history, credit reports, references, and industry are important factors to consider, but the age of the accounts receivable is the single most important indicator.

What Is the Single Most Important Indicator Used to Identify