Regularly reviewing an accounts receivable aging report can help management do what?
A)identify customers who have not purchased anything lately
B)determine whether changes are needed in the firm's credit policies
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 determine whether changes are needed in the firm's credit policies. This report provides an overview of how much money is owed to the company and how long it has been outstanding, allowing management to assess the effectiveness of their credit policies and make adjustments if necessary. While the other options may also be addressed by monitoring the accounts receivable aging report, they are not the primary purpose of such analysis.

Regularly Reviewing an Accounts Receivable Aging Report Can Help Management