A breakdown of accounts receivable according to the length of time outstanding is known as a(n):
A)Amortization schedule
B)Sources of cash flow statement
C)Receivables inventory
D)Aging schedule

Question

Quizplus · Accepted Answer

An aging schedule or aging report is a breakdown of accounts receivable according to the length of time outstanding. It categorizes customers' balances into groups based on how long they have been outstanding. This allows businesses to monitor their cash flow and to take action on overdue accounts, such as sending reminders or pursuing collection efforts. Therefore, option D is the best choice.

A Breakdown of Accounts Receivable According to the Length of Time