The Matching Principle Requires

question 174

Multiple Choice

The matching principle requires:

• A)That expenses be ignored if their effect on the financial statements are less important than revenues to the financial statement user.
• B)The use of the direct write-off method for bad debts.
• C)The use of the allowance method of accounting for bad debts.
• D)That bad debts be disclosed in the financial statements.
• E)That bad debts not be written off.

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Definitions:

Work Stress

The experience of stress related to one's job, including challenges and demands that may exceed an individual's resources or abilities to cope.

External Pressures

Forces from outside an organization or individual that influence their decisions, behaviors, or performance, such as market trends, regulatory requirements, or societal norms.

Psychological Response

The mental and emotional reaction of an individual to various stimuli or situations, influenced by their psychological state.

Job Stress

The adverse reaction people have to excessive pressures or other types of demand placed on them at work, which can impact mental and physical health.