If the firm wants to identify the percentage of accounts receivable that are over 90 days old, the firm should prepare
A) a detailed analysis of accounts receivable.
B) an aging schedule.
C) a credit analysis.
D) an analysis of the cash cycle.

Question

Quizplus · Accepted Answer

An aging schedule categorizes accounts receivable based on how long they have been outstanding, making it the appropriate tool for identifying the percentage of accounts that are over 90 days old.

If the Firm Wants to Identify the Percentage of Accounts