Why does the write-off of uncollectible accounts have no effecton the accounts receivable on the balance sheet if bad debts areestimated? If not directly written off as bad debts expense howdoes a company properly recognize uncollectible receivable activityon the income statement? Why are controls over the cash asset soimportant? What risks exist if adequate controls are not in place?Why is it important to distinguish between current assets and longterm assets? What concerns would you have if a company’s currentassets increased dramatically? What concerns would you have ifcurrent assets decreased while long term assets increaseddramatically?
