What is Accounts Receivable Aging?
The ageing of accounts receivable refers to the time that accounts receivable in the balance sheet elapsed from the date of sales realization and account receivables to the balance sheet date. In short, it is the time that the receivables exist on the books.
Accounts receivable aging
Right!
- Chinese name
- Accounts receivable aging
- Foreign name
- Aging of accounts receivable
- Application area
- finance
- The ageing of accounts receivable refers to the time that accounts receivable in the balance sheet elapsed from the date of sales realization and account receivables to the balance sheet date. In short, it is the time that the receivables exist on the books.
- The analysis of the aging of the receivables is conducive to evaluating the operating performance of the sales department, accelerating the collection of payment, and reducing the loss of bad debts; it is beneficial to users of accounting statements to better understand the company's assets.