The Matching Principle Requires

question 125

Multiple Choice

The matching principle requires:

• A)The use of the direct write-off method for bad debts.
• B)That bad debt expenses be reported in the same accounting period as the sales they helped generate.
• C)The use of the allowance method of accounting for bad debts.
• D)That bad debt expenses be reported in the same accounting period as the sales they helped generate and requires the use of the allowance method of accounting for bad debts.
• E)That bad debt expenses be reported in the same accounting period as the sales they helped generate and requires the use of the direct write-off method for bad debts.

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Definitions:

Predictions

Future estimations or anticipations based on current trends or data analysis.

Proved Reserves

Located quantities of natural resources, such as oil or gas, that can be recovered in the future with high certainty under existing economic and operational conditions.

Natural Resources

Raw materials and environmental attributes derived from nature that are used in the production of goods and services.

Proved Reserves

Proved reserves are quantities of natural resources, such as oil or natural gas, which have been discovered and are considered recoverable under current economic and operational conditions.