The Aging of Accounts Receivable Method Is Based Upon the Principle

question 20

True/False

The aging of accounts receivable method is based upon the principle that the longer an account is overdue,the higher the risk of nonpayment.

---

Definitions:

Partnership Agreement

A document that outlines the rights, responsibilities, and obligations of each partner in a partnership.

Transferable Shares

Stocks or shares in a company that can be sold or transferred from one party to another without restrictions.

Limited Liability Companies

An organizational model that merges the direct tax benefits seen in partnerships or sole proprietorship with the benefit of reduced personal liability found in a corporation.

Qualification

The attributes, knowledge, or skills required to perform a particular job or activity, or the act of meeting such criteria.