Question

An accounts receivable aging report is useful for doing everything except

a. projecting the timing of future cash flows.
b. estimating future sales.
c. estimating bad debts.
d. deciding whether to increase a specific customer's credit limit.

Answer 1

b. estimating future sales.

Step-by-step explanation:

The account receivable aging report helps the business organization to estimate the bad debts, it increase the credit period as they know that they received their money from that client. Plus it also measures the future cash flow timing.

There are various aging like 0 - 30 days, 30 - 60 days and so on depending upon the type of the customer and the amount of goods sold to them