The Direct Write-Off Method for Uncollectible Accounts

question 118

Multiple Choice

The direct write-off method for uncollectible accounts:

• A)ignores the matching principle.
• B)is an acceptable alternative method of recognizing bad debt expense under GAAP.
• C)results in higher bad debt expense for most companies.
• D)may only be used by companies that do not extend credit to their customers.

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Definitions:

Polypore

A type of fungus with pores or tubes on the underside, which releases spores.

Microporous Products

Products designed with very small pores that allow for filtration, absorption, or other interactions with particles and fluids at the microscopic level.

Competition

The activity or condition of striving to gain or win something by defeating or establishing superiority over others.

Consolidation

The process of combining multiple entities, assets, or financial statements into a single entity.