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Aging

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Dictionary Says

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 Says

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.

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