If a Company Does Not Know at the End of a Year

question 58

True/False

If a company does not know at the end of a year exactly how much of its accounts receivable will not be collected, it is not allowed under GAAP to estimate the bad debt expense.

---

Definitions:

Cartilages

A flexible, strong connective tissue found in various parts of the body such as joints, nose, and ears, providing support and cushioning.

Cyan

A greenish-blue color, one of the primary subtractive colors used in color printing and photography.

Septum

A partition separating two chambers, such as in the heart or nose, that is typically made of muscle or bone.

Anterior Nares

The technical term for the nostrils, which are the external openings of the nasal cavity.