The Matching Principle Requires That Bad Debts Be Treated as an Expense

question 45

Multiple Choice

The matching principle requires that bad debts be treated as an expense in the year

• A)the sale is made.
• B)the customer files bankruptcy.
• C)in which the debt becomes six months past due.
• D)a court declares it to be uncollectible.

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Definitions:

Least Expensive

Referring to the option that costs the least amount of money, often sought in budgeting and financial planning.

Ethical Issue

A situation or decision that involves a conflict between a person's moral principles and the best course of action.

Federal Trade Commission

A U.S. federal agency responsible for protecting consumers and ensuring a strong competitive market by enforcing antitrust and consumer protection laws.

Improved

Made better or enhanced in quality, value, or condition.