CMAA Practice Exam 2026 – Complete Guide for Exam Prep

An aging analysis is a financial tool used primarily in accounting and collections to categorize overdue accounts based on the length of time an invoice has been outstanding. This method helps organizations manage their receivables efficiently by tracking which accounts are overdue and how long they have been overdue. By breaking down accounts receivable into categories such as current, 30 days past due, 60 days past due, and so on, businesses can prioritize their collection efforts, understand their cash flow issues, and make informed decisions regarding credit policies. This approach enables effective management of financial health and supports better cash flow forecasting.