Accounts receivable are rarely worth face value,and should be "aged" when evaluating a company's assets.

Name: Accounts receivable are rarely worth face value,and should be "aged" when evaluating a company's assets.
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Question

Quizplus · Accepted Answer

Accounts receivable represent money owed to a company, but there is always a risk that the debtor will not pay. Therefore, they are often discounted or written off, and need to be evaluated based on how long they have been outstanding (i.e. "aged").

Accounts Receivable Are Rarely Worth Face Value,and Should Be "Aged