Debtors’ Age Analysis (Grade 12 NSC Matric Accounting): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is the main purpose of debtors' age analysis?
What is the main purpose of debtors' age analysis?
To break down debts by time periods
When a debtor returns goods, from which invoice is the return deducted?
When a debtor returns goods, from which invoice is the return deducted?
The most recent invoice
When a debtor makes a payment, which balance is reduced first?
When a debtor makes a payment, which balance is reduced first?
The oldest unpaid debt
Why are returns subtracted from the latest sale?
Why are returns subtracted from the latest sale?
Returned goods can be resold within 7 days
Which is a key reason for conducting debtors' age analysis?
Which is a key reason for conducting debtors' age analysis?
To ensure business liquidity
What indicates customers are paying relatively on time?
What indicates customers are paying relatively on time?
Most balances in current & 30-day
What is the ideal distribution for debtors' age analysis?
What is the ideal distribution for debtors' age analysis?
70% current, 25% 30-day, 5% older
What is a commonly used payment period in credit terms?
What is a commonly used payment period in credit terms?
30 or 60 days
How are discounts treated in debtors' age analysis?
How are discounts treated in debtors' age analysis?
The same way as receipts
What must the sum of all age categories equal?
What must the sum of all age categories equal?
The total debtor balance