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An Important Tool Used in Assessing the Quality of Receivables

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Essay

An important tool used in assessing the quality of receivables is the aged accounts receivable report.What is it, how does it work, and what are its positive and negative characteristics?

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Definitions:

Equivalent Imports

Goods or services brought into a country that serve the same purpose as locally produced goods or services.

Quota

A government-imposed trade restriction limiting the number or monetary value of goods that can be imported or exported during a specified period.

Tariff

A tax imposed on imported goods, often to protect domestic industries or to generate revenue.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount they do sell it for, representing their profit.

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