The Recording of Accounts Receivable Is Linked to the

question 13

Multiple Choice

The recording of accounts receivable is linked to the

• A) Matching principle
• B) Revenue recognition principle
• C) Cost principle
• D) Materiality principle
• E) Monetary unit principle

---

Definitions:

Aging Method

An accounting technique used to estimate uncollectible accounts receivable based on the age of each account's outstanding invoices.

Direct Write-off

The Direct Write-off method is an accounting procedure where uncollectible debts from customers are directly written off against income at the time they are deemed uncollectible.

Bad Debts Recovered

Amounts previously written off as uncollectible but later received or recovered, leading to an adjustment in the financial statements.

Accounts Receivable

Outstanding payments from customers to a business for delivered goods or services awaiting settlement.