How Do You Spell AGING RECEIVABLES?

Pronunciation: [ˈe͡ɪd͡ʒɪŋ ɹɪsˈiːvəbə͡lz] (IPA)

The spelling of "aging receivables" might seem confusing at first, but it's actually quite straightforward once you understand the pronunciation. The key to this word is the sound of the letter "g" - it's pronounced like a "j" in this context. So the IPA transcription would be /eɪdʒɪŋ/ /ɹɪˈsiːvəbəlz/. "Aging" is pronounced with a long "a" sound and the stress on the first syllable, while "receivables" is stressed on the second syllable and has a schwa sound in the third syllable.

AGING RECEIVABLES Meaning and Definition

1. Aging receivables refers to the process of categorizing outstanding invoices or accounts receivable based on the length of time they have been outstanding or overdue. It is a financial term commonly used in accounting and business management to track and analyze the aging of unpaid customer debts.

   In a business context, when a customer makes a purchase on credit, an invoice is generated for the amount owed. Aging receivables helps businesses monitor the time it takes for customers to pay these invoices. The aging receivables report typically categorizes outstanding invoices into different time periods, such as 30 days, 60 days, 90 days, and so on. Each category represents the number of days the invoice has been outstanding from the date it was issued.

   Analyzing aging receivables provides businesses with insights into their cash flow and helps identify potential collection issues. By tracking the aging process, businesses can identify customers who are consistently paying late, allowing them to take appropriate actions such as follow-ups or implementing stricter credit terms. It also assists in forecasting cash flow and managing working capital efficiently.

   In summary, aging receivables is a method used by businesses to account for, manage, and analyze outstanding customer invoices based on the number of days they have remained unpaid. It serves as an important tool for cash flow management, credit control, and evaluating the financial health of a company.

Etymology of AGING RECEIVABLES

The word "aging" in the context of receivables refers to the process of categorizing and tracking the various stages of past due accounts or outstanding invoices. It helps businesses analyze and manage their accounts receivable by classifying them into different time periods based on when they are due for payment.

The term "aging receivables" combines these two words. The word "aging" comes from the verb "age", which in this case means the passage or progression of time. It is derived from the Old French word "asage" or "aage", which means "state or period of life".

The word "receivables" refers to the amounts owed to a company by its customers or clients. It is derived from the verb "receive" and the suffix "-able", which means capable of or worthy of.