Which of the Following Violates the Matching Principle

question 10

Multiple Choice

Which of the following violates the matching principle?

• A)Direct write-off method
• B)Allowance method
• C)Percentage of credit sales method
• D)Aging of accounts receivable method

---

Definitions:

Equity Accounting

A method of accounting whereby an investor records its investment in an associate company at initial cost and subsequently adjusts the carrying amount for its share of the earnings and losses of the associate.

Reporting Entities

Organizations or entities that are required to prepare financial statements to provide information to external users such as investors, creditors, and regulatory agencies.