aging schedule

[blackjack21]

Can we compare firm to other firm using aging schedule and wtd avg collection period? What are the use of these two measures as far as L1 is concerned? What all do we need to know about them?

[blackjack21]

Anyone?/

[S2000magician]

@blackjack21

Can we compare firm to other firm using aging schedule and wtd avg collection period?

Yes.

@blackjack21

What are the use of these two measures as far as L1 is concerned?

According to the LOS, you have to be able to use them to evaluate a company’s accounts receivable management.

@blackjack21

What all do we need to know about them?

How to use them to compare one company’s A/R management to another’s, and how to use them to identify trends in a company’s A/R management over time.

[sachin_patel]

I’ve read FR and i didn’t come across aging schedule…

scary!

[S2000magician]

@sachin\_patel

I’ve read FR and i didn’t come across aging schedule…

scary!

It’s in Corporate Finance.

[blackjack21]

@S2000magician

@blackjack21

Can we compare firm to other firm using aging schedule and wtd avg collection period?

Yes.

@blackjack21

What are the use of these two measures as far as L1 is concerned?

According to the LOS, you have to be able to use them to evaluate a company’s accounts receivable management.

@blackjack21

What all do we need to know about them?

How to use them to compare one company’s A/R management to another’s, and how to use them to identify trends in a company’s A/R management over time.

Thanks a lot. The Schweser’s text doesn’t have a question based on this. Can you roll out one here? Or Let me know about a source? OMG, last minute crunch is killing me.