How are the Accounts Payable and Accounts Receivable Aging reports similar and how are they different?
A)Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes how much our company sold on account and one summarizes how much our company has purchased on credit this accounting period.
B)Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts we owe our customers and one summarizes amounts our vendors owe us.
C)Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts owed to us from customers and one summarizes amounts due to our vendors.
D)Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts we need to finance to pay our debts and one summarizes amounts we need to provide as financing to our customers to pay their debts when due.

Question

Quizplus · Accepted Answer

Both the Accounts Payable and Accounts Receivable Aging reports summarize account balances by the age of the account. However, the Accounts Payable report summarizes amounts due to our vendors while the Accounts Receivable report summarizes amounts owed to us from customers. Therefore, the correct option is C.

How Are the Accounts Payable and Accounts Receivable Aging Reports