Aging Schedule
Stock Market Terms, Definition, Share Market Glossary, Share Bazar Terminology
Aging Schedule - This is prepared by a company’s auditor on the basis of trade ACCOUNTS RECEIVABLE, of great importance to the company’s sources of credit, its sales staff, and FUNDAMENTAL ANALYSTS. The schedule is a list of amounts receivable by the months in which they were created, and a list of receivables by maturity-classified as current or in various stages of default. It suggests where collection efforts should be concentrated, and helps assess whether the company’s reserves are adequate enough to cover bad debts. It also helps formulate the company’s future sales policy.
It is a list of accounts receivable broken down by number of days until due or past due.
Aging Schedule
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