Question

Requires an analysis of accounts receivable balanced by the length of time they have been unpaid. Idea is longer a debit is outstanding the less likely it is to be paid. What does the it refer to?

Answer 1

The 'it' in the question refers to the accounts receivable balance being analyzed by the length of time they have been unpaid, with longer outstanding debits being less likely to be paid.

Step-by-step explanation:

The 'it' referred to in your question is the accounts receivable balance that is being analyzed by the length of time they have been unpaid. The longer a debit is outstanding, the less likely it is to be paid. This analysis allows for the identification of potential bad debts and helps businesses in managing their cash flow effectively.