The Two Methods of Accounting for Bad Debts Are the Direct

question 38

Multiple Choice

The two methods of accounting for bad debts are the direct write-off method and the allowance method. When comparing the two, which of the following is true?

• A) The direct write-off method is exact and also better illustrates the matching principle
• B) The allowance method is less exact but it better illustrates the matching principle
• C) The direct write-off method is theoretically superior
• D) The direct write-off method requires two separate entries to write off an uncollectible account

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Definitions:

Biological Basis

The underlying genetic, neurological, or physiological factors that contribute to a specific behavior, trait, or condition.

Animal Models

Non-human species used in research and experiments as surrogates for humans, to study biological and behavior processes.

Anatomy

Anatomy is the branch of biology that studies the structure of organisms and their parts.

Hypothalamus

A region of the brain responsible for the regulation of certain metabolic processes and other activities of the autonomic nervous system, including hunger, thirst, and body temperature.