As the Past Due Time Increases for an Account, the Likelihood

question 53

Multiple Choice

As the past due time increases for an account, the likelihood of collecting that account:

• A) usually goes down.
• B) usually goes up.
• C) Time does not affect collectibility.
• D) None of the above

---

Definitions:

QBO

Abbreviation for QuickBooks Online, a cloud-based accounting software designed for small and medium-sized businesses.

3-Way Match

A process in accounts payable to compare the purchase order, delivery receipt, and invoice before processing a payment, ensuring accuracy and preventing fraud.

Internal Control

A framework used by businesses to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Vendor Transactions

Financial interactions or exchanges between a business and its suppliers or service providers.