Regularly reviewing an accounts receivable aging report can help management do what?
A)spot firms who are falling behind in their payments
B)identify customers who have not purchased anything lately
C)improve the speed which customers make payments
D)determine whether the firm's pricing policy is effective

Question

Quizplus · Accepted Answer

Regularly reviewing an accounts receivable aging report can help management spot firms who are falling behind in their payments, allowing them to take appropriate actions such as calling the delinquent customers or suspending their credit privileges.

Answer: C 
 The review of the aging report can also help management identify trends in customer payment behavior, and take proactive measures to improve the speed of payments by tightening credit terms, offering discounts for early payments, or providing incentives to customers who consistently pay on time.

Therefore, the best choice(s) are A and C.

Regularly Reviewing an Accounts Receivable Aging Report Can Help Management