Which of the following would NOT typically be used for assessing customer quality for purposes of granting trade credit?
A) Ratio analysis
B) Aging of accounts receivable
C) Credit scoring
D) Credit rating services

Question

Quizplus · Accepted Answer

Aging of accounts receivable is primarily used for managing existing credit accounts and assessing their payment history, rather than for assessing new customers for the purpose of granting trade credit. Ratio analysis, credit scoring, and credit rating services are tools used to evaluate the financial health and creditworthiness of new or existing customers before granting credit.

Which of the Following Would NOT Typically Be Used for Assessing