what is the Ageing analysis?what is the purpose?
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Answer Posted / rahul prasad
in accounting point of view, aging analysis is a analysis
of avg no of days take to company collect their book debt from their customer.
purpose/object of aging analysis
. To creditors
. To investors
.to bankers
.to find liquidity
This analysis is very useful to above stated three partys such as creditors,investors,bankers because this analysis give power of a firm to collect their liquid funds
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