The existence of uncollectible accounts is not evidence of poor credit policies.

Question

Quizplus · Accepted Answer

Uncollectible accounts can result from various factors such as economic downturns, fraud, customer bankruptcies, or unforeseen events. Thus, the existence of uncollectible accounts alone cannot be attributed to poor credit policies. However, a high rate of uncollectible accounts may indicate a need for a review of credit policies and procedures to reduce the likelihood of future losses.

The Existence of Uncollectible Accounts Is Not Evidence of Poor