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LSDefine

Simple English definitions for legal terms

aging of accounts

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A quick definition of aging of accounts:

Aging of accounts: This is a way of organizing the money that people owe a company based on how long it has been since they were supposed to pay. This helps the company figure out how much money they might not be able to collect in the future.

A more thorough explanation:

Definition: Aging of accounts is a method used to categorize accounts receivable based on the length of time they have been outstanding. This process helps estimate the amount of uncollectible accounts as of a specific date.

Example: Let's say a company has several outstanding invoices from different customers. The aging of accounts process would involve categorizing these invoices based on how long they have been unpaid. For instance:

  • Invoices unpaid for less than 30 days
  • Invoices unpaid for 31-60 days
  • Invoices unpaid for 61-90 days
  • Invoices unpaid for more than 90 days

By categorizing the invoices in this way, the company can estimate how much of their accounts receivable may be uncollectible. For example, invoices that have been unpaid for more than 90 days may be considered more likely to be uncollectible than those that have been unpaid for less than 30 days.

The aging of accounts process is important for companies to manage their cash flow and ensure they have accurate financial statements.

agillarius | aging-out

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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