California IDEX Practice Exam

An interior designer could determine which clients have not paid by looking at the...

1. Accounts payable ledger

2. Income statement

3. Bank reconciliation

4. Aged accounts receivable

The correct answer is: Aged accounts receivable

In this case, the correct answer is D. An interior designer can determine which clients have not paid by looking at the Aged accounts receivable. This provides a detailed breakdown of outstanding payments from clients and helps the designer keep track of who still owes money. Options A, B, and C are not directly related to tracking clients' payments. The accounts payable ledger (Option A) tracks what the designer owes to vendors, the income statement (Option B) shows the designer's financial performance over a period of time, and bank reconciliation (Option C) is used to ensure the accuracy of a company's financial records. These options are not focused on tracking client payments specifically.