Final answer:
An accounts receivable past its due date is less likely to be repaid. Factors such as the borrower's payment history and changing market interest rates influence the perceived value of the loan, making it either less or more attractive depending on whether rates have risen or fallen since the loan's origination.
Step-by-step explanation:
History suggests that an accounts receivable (ACCTS REC) that is past its due date is less likely to be repaid.
When analyzing the value of a loan or accounts receivable, the payment history of the borrower is highly relevant. A borrower who has been late on a number of loan payments looks perhaps less likely to repay the loan, or to repay it on time, and thus, as a lender or investor, you would want to pay less for that loan, deeming it a higher risk.
Moreover, changing interest rates in the market affect the attractiveness of existing loans. If the interest rates have risen since the loan was made, the loan yielding at the initially lower rate becomes less desirable. Conversely, if the borrower has a history of high profits or if the market interest rates have fallen, the loan becomes more attractive and you would likely be willing to pay more for it as the risk of nonpayment is perceived to be lower.