An aging schedule illustrates the relationship between:
A)Customers and repeat sales
B)Sales and profitability
C)The ratio of accounts receivable to sales
D)Accounts receivable and their average time outstanding

Question

Quizplus · Accepted Answer

An aging schedule is a tool used in accounting to track the amount of time that accounts receivable have been outstanding. It categorizes receivables based on the length of time they have been due and unpaid, and helps to identify any problem areas where collections may need to be made. Therefore, the aging schedule illustrates the relationship between accounts receivable and their average time outstanding.

An Aging Schedule Illustrates the Relationship Between