A technique that provides the 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) a credit analysis.
B) credit scoring.
C) the economic order quantity model.
D) aging of receivables.

Question

Quizplus · Accepted Answer

Aging of receivables is a technique that categorizes accounts by the length of time they have been outstanding. This information helps analysts understand the composition of outstanding receivables and identify any potential credit risks. Credit analysis and scoring also involve evaluating creditworthiness, but do not provide this specific breakdown of account age. The economic order quantity model is a method used in inventory management, not receivables management.

A Technique That Provides the Analyst with the Information Concerning