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An Aging of Trade Accounts Receivable Schedule Is Based on the Premise

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An aging of trade accounts receivable schedule is based on the premise that the longer the period an account remains unpaid, the greater the probability that it will eventually be collected.

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Definitions:

Positive Trend Line

A graphical representation indicating an increase or upward movement in data points over time.

Slope

In a linear equation, the coefficient that represents the rate of change of the dependent variable with respect to the independent variable.

Y′ Symbol

A notation generally used to represent predicted values, especially in the context of regression analysis.

Y Intercept

The y-intercept is the point where a line or curve intersects the y-axis of a graph.

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