aging

aging definition - business

aging

A technique for evaluating the composition of a firm's accounts receivable to determine whether irregularities exist. It is carried out by grouping a firm's accounts receivable according to the length of time accounts have been outstanding. For example, a financial analyst may use aging to determine whether a firm carries many overdue debtors that may never pay their bills. Also called account aging, receivables aging.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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