The Procedure That Most Nearly Attains the Objective of Matching

question 10

Short Answer

The procedure that most nearly attains the objective of matching revenues and expenses to specific accounting periods is called the________ basis of accounting.

---

Definitions:

Percent of Sales Method

A financial planning tool used to forecast future revenues, expenses, or balance sheet figures as a percentage of sales.

Uncollectible Accounts Receivable

Accounts receivable that are considered to be uncollectible due to the inability of the customers to pay.

Journal Entries

Recorded transactions in the accounting system, documenting financial changes in accounts.

Percent of Sales

Percent of sales is a financial analysis tool that helps in estimating how certain accounts, like revenue and expenses, will vary in proportion to changes in sales.