Which of the following is NOT an advantage of using Debtor Aging Analysis?

The correct answer is that calculating income tax obligations is not an advantage of using Debtor Aging Analysis.

Debtor Aging Analysis is primarily a tool used to assess the creditworthiness and payment patterns of a business's customers. It helps in managing accounts receivable more effectively. One of its main advantages is prioritizing which debtors need to be chased up, allowing businesses to focus their collection efforts on those who owe the most and are overdue. Additionally, it can assist in identifying customers who are eligible for early payment discounts, which can encourage prompt payment and improve cash flow. Furthermore, businesses can use the analysis to determine which debtors are subject to interest charges based on how long their payments have been overdue.

In contrast, calculating income tax obligations falls outside the scope of Debtor Aging Analysis. Income tax calculations typically depend on a broader range of financial data, including revenue, expenses, and applicable tax rates, rather than solely on accounts receivable information. Therefore, while Debtor Aging Analysis provides valuable insights into customer payment behavior and helps in managing cash flow, it does not directly assist with income tax calculations.