CA Intermediate · Financial Management and Strategic Management · Management of Receivables
In the context of receivables management, which of the following is the standard term for a report that classifies outstanding customer balances according to the length of time they have been due?
The correct term is an ageing schedule. It classifies outstanding customer balances by how long they have been due, such as 0-30 or 31-60 days, helping management identify slow payers, plan collections and estimate doubtful debts.
- AAgeing scheduleCorrect
- BCredit rating sheet
- CCash budget
- DFunds flow statement
Explanation
An ageing schedule groups outstanding receivables by the period they have remained unpaid (for example 0-30 days, 31-60 days). It helps management spot slow-paying customers and doubtful debts. A cash budget forecasts cash flows and does not classify debtors by age.
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