The Direct Write-Off Method

question 50

Multiple Choice

The direct write-off method:

• A)ignores the matching principle.
• B)is an acceptable alternative method of recognizing bad debt expense under GAAP.
• C)results in higher bad debt expense for most companies.
• D)may only be used by companies that do not extend credit to their customers.

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Definitions:

Indexing

The naming of a file.

Tapered Extension

A narrowing or reducing in thickness towards one end of an object or structure.

File Folder

A folder or holder used for organizing and storing papers and documents.

Permanent Tracks

Fixed pathways or routes that remain in a constant location over time, often referring to those used in transportation or infrastructure.