Question

Separate accounts receivable information for each customer is important because it reveals all of the following except: Multiple Choice When the customer intends to pay outstanding balances. How much each customer has purchased on credit. How much each customer has paid. The basis for sending bills to customers. How much each customer still owes.

Answer 1

Answer:

The correct option is that it reveals when customer intends to pay outstanding balances

Explanation:

Such analysis of separate accounts receivable information for each customer, no doubt,shows how much credit purchases individual customers have made in order to see at a glance the amount receivable from them individually.

Also,the amount paid thus far is also shown alongside the total credit purchase amount in order to arrive at customers' outstanding balances that the company to chase in order to ensure a liquid cash position overall.

However, the analysis does not include information on when customers intend to make payment but rather includes the dates payments are expected from customers i.e due dates