Question

A listing of the balances in the accounts receivable master file at the balance sheet date, by total balance outstanding and by the amount of time the component parts have been outstanding, is the:

A) customer list.
B) aged trial balance.
C) accounts receivable ledger.
D) schedule of accounts receivable.

Answer 1

The correct term for the listing described is the 'aged trial balance,' which is essential for evaluating the condition of a company's receivables. Option b

Step-by-step explanation:

The listing being referred to, which includes the balances in the accounts receivable master file at the balance sheet date, organized by total balance outstanding and by the age of each account, is known as the aged trial balance.

This tool is crucial for assessing the health of a company's receivables and estimating the potential for uncollectable debts. The aged trial balance helps in identifying overdue accounts and assists in effective accounts receivable management. option b