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 liability. puts the item in the wrong financial bucket, timing, base, or comparison for accounts receivable aging.
Option B: Record it as new revenue again.
Record it as new revenue again. puts the item in the wrong financial bucket, timing, base, or comparison for accounts receivable aging.
Option D: Move it to equipment cost.
Move it to equipment cost. puts the item in the wrong financial bucket, timing, base, or comparison for accounts receivable aging.
Memory Technique
Accounts Receivable ledger for Reviewing Office: put older in the right drawer.
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.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?
People Also Study
Related Study Resources
Previous Question
A wage statement lists gross pay but omits required hourly rate and deduction information. What should be corrected?
Next Question
A homeowner signs a $23,500 home improvement agreement for a shower replacement before work starts. Under the lesser-of-10-percent-or-$1,000 deposit cap, what maximum deposit may be requested?