Receivables are divided into three distinct groupings. Those that are recent or generally less than 90 days are considered current, those older than 90 days are aged (in some businesses, receivables older than 30 days is considered aged), and extended receivables – those customers with credit extended beyond 90 days due to payment cycles or due process issues normally found in their industries.
The asset side of the balance sheet is divided into 3 major sections. They include current assets, fixed assets, and other assets. Current assets carry the most value to the small business entrepreneur because of […]