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    Question

    In financial terms, ___________ enables the analysts to identify slow paying debtors. (Pick the most appropriate option in line with the spirit of the question)

    A Liberal schedule Correct Answer Incorrect Answer
    B Payment schedule Correct Answer Incorrect Answer
    C Debtors' schedule Correct Answer Incorrect Answer
    D Ageing schedule Correct Answer Incorrect Answer

    Solution

    An ageing schedule, also known as accounts receivable ageing, is a financial report that categorizes a company's outstanding accounts receivable (amounts owed by customers) based on the length of time the invoices have been unpaid. It presents a breakdown of the outstanding receivables by different time periods, such as 30 days, 60 days, 90 days, etc. This schedule helps analysts and management identify and track slow-paying or overdue debtors, which can have implications for the company's cash flow and financial health.

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