Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 36)
What is the purpose of the 'aged trade receivables schedule'?
To track the amount of inventory a business holds.
To categorize and analyze outstanding customer invoices by the amount of time they are overdue.
To determine the average purchase price of goods sold.
To monitor the payments made to suppliers.
Explanation
The aged trade receivables schedule is used to monitor and assess the status of outstanding invoices from customers, categorized by how long they've been outstanding.
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