Question

An accounts receivable summary should list money that is due to the practice in which of the following daily increments?

1) 10, 20, and 30
2) 20, 40, and 60
3) 30, 60, and 90
4) 40, 80, and 120
5) 60, 90, and 120

Answer 1

An accounts receivable summary typically lists money due in increments of 30, 60, and 90 days, allowing businesses to manage cash flow and minimize bad debt risk.

Step-by-step explanation:

An accounts receivable summary should list money that is due to the practice in the increments that best suit the billing cycle and the industry-standard practices. In many businesses, the standard aging periods for accounts receivable are 30, 60, and 90 days. This categorization helps businesses understand how long invoices have been outstanding and identify potential issues in the cash flow. It is important for efficient cash management and to minimize the risk of bad debts.