The categorization of a firm's accounts by the number of days they have been on the firm's books is called a(n):
A)payments pattern.
B)accounts receivable days calendar.
C)aging schedule.
D)payments record.
E)order book.

Question

Quizplus · Accepted Answer

The categorization of a firm's accounts by the number of days they have been on the firm's books is called an aging schedule. It is a table that lists all outstanding customer accounts and separates them into different time buckets based on their age, typically 30 days, 60 days, 90 days or more. The aging schedule is an important tool for managing accounts receivable and helps the firm identify any potential problems with collecting payments in a timely manner.

The Categorization of a Firm's Accounts by the Number of Days