Companies do not need to explain to financial statement users how uncollectable receivables are accounted for because they do not need this information.

Question

Quizplus · Accepted Answer

Companies do need to explain how uncollectable receivables are accounted for in their financial statements, as this information is important for users to assess the company's ability to collect its outstanding debts and to estimate any potential losses due to uncollectable accounts. This information is typically provided in the footnotes to the financial statements.

Companies Do Not Need to Explain to Financial Statement Users