The longer an accounts receivable is outstanding, the lower its probability of collection.

Name: The longer an accounts receivable is outstanding, the lower its probability of collection.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because the longer an accounts receivable remains unpaid, the more likely the customer is experiencing financial difficulties or is otherwise unwilling or unable to pay. As time passes, the likelihood of collecting the debt decreases, making it increasingly difficult to obtain payment.

The Longer an Accounts Receivable Is Outstanding, the Lower Its