Why Is the Direct Write-Off Method Not Allowed Under GAAP

question 56

Multiple Choice

Why is the direct write-off method not allowed under GAAP to account for doubtful accounts?

• A)It is too difficult to implement.
• B)It is allowed in certain circumstances.
• C)It violates the expense recognition principle ("matching").
• D)It is only allowed under IFRS.

---

Definitions:

Deviations From Standards

Deviations from standards refer to instances where performance or output fails to meet established benchmarks or expectations.

Transactional Leaders

Leaders who focus on the exchange process between themselves and their followers, emphasizing task completion and performance rewards.

Genuine Desire

A sincere and authentic longing or aspiration without any ulterior motives or pretenses.

Hardwork

The application of effort, endurance, and diligence in the pursuit of a goal or task.