A receivable is more than 90 days old and no payment plan exists. What office action is most appropriate?
Correct Answer
C) Prioritize collection follow-up.
Older receivables should be reviewed and followed up for collection, dispute resolution, or allowance consideration.
Why This Is the Correct Answer
Older receivables should be reviewed and followed up for collection, dispute resolution, or allowance consideration.
Why the Other Options Are Wrong
Option A: Unearned revenue liability.
Unearned revenue is for deposits, not an old unpaid invoice.
Option B: Record it as new revenue again.
Recording the invoice again double-counts revenue.
Option D: Move it to equipment cost.
An unpaid customer balance is not equipment cost.
Reference Hint
Study anchor (closed-book): memorize Accounts receivable aging from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
Independent practice; verify any reference hint against the edition and category permitted for your booking. Official exam and reference-list sources →
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