Accounts receivable aging - Definition

A company's receivables is classified according to the length of time an invoice has been outstanding on the Basis of a periodic report. Account receivable aging is a tool that helps to Analyse and critically understand the company's customer, thereby maintain company's strength.

For example if account receivable aging shows that it takes more than the required time to collect the receivables, it is an indication that the business may be slowing down or that the company is taking big Credit Risk. It there by helps the company to make important decision like, if it should carry on business with the customers who repeatedly pay late.



Terms near "Accounts receivable aging"

Accounts receivable financing
Accounts receivable turnover
Accredited investor
Accredited Personal Financial Planning Specialist
Accreted value
Accretion
Accretive
Accrual basis accounting
Accrual bond
Accrual of discount
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