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Commerce · Q192

Accounting

Graduate and Post Graduate · Commerce · question 192

Q192

What does 'aged debtors analysis' signify?

A.
shows how long debts have been outstanding
Answer
B.
How old the customers are
C.
How long does a business take to repay the bank loans
D.
Minimum number of old debtors

Answer: Option A

Solution

Answer: Option A
Solution:
Aged debtors analysis shows how long debts have been outstanding. An aged debtors report is a totalled list of all the invoices your customers haven't yet paid you for, less any credit notes you've issued to your customers and not yet refunded them for.