Aging

AAA

DEFINITION of 'Aging'

A method used by accountants and investors to evaluate and identify any irregularities within a company's account receivables. Aging is achieved by sorting and inspecting the accounts according to their length outstanding.

INVESTOPEDIA EXPLAINS 'Aging'

By aging a company's accounts receivables, one can get a better view of a company's bad debt and financial health.

RELATED TERMS
  1. Accounting

    The systematic and comprehensive recording of financial transactions ...
  2. Accounts Receivable - AR

    Money owed by customers (individuals or corporations) to another ...
  3. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  4. Forensic Accounting

    Forensic Accounting utilizes accounting, auditing, and investigative ...
  5. Fundamental Analysis

    A method of evaluating a security that entails attempting to ...
  6. Expanded Accounting Equation

    The expanded accounting equation is derived from the accounting ...
Related Articles
  1. Internships: Find The Best One For You
    Professionals

    Internships: Find The Best One For You

  2. Budgeting While You're In College
    Budgeting

    Budgeting While You're In College

  3. Cleaning Up Dirty Surplus Items On The ...
    Markets

    Cleaning Up Dirty Surplus Items On The ...

  4. What's the difference between weighted ...
    Investing

    What's the difference between weighted ...

comments powered by Disqus
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  5. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
  6. Underwriting

    1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments ...
Trading Center