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:

Harsh New Laws

Recent legislation that is particularly severe, strict, or oppressive in nature.

1712 and 1741

Reference years to notable events; notably, 1712 references the New York Slave Revolt of 1712, and 1741 may refer to the New York Conspiracy of 1741, both highlighting slave resistance.

Colony of Carolina

Colony of Carolina was one of the British colonies in North America, founded in the 17th century, which later split into North Carolina and South Carolina, playing significant roles in the economic and social development of the future United States, particularly in terms of colonial and antebellum slavery.

Wealthy Courtiers

Influential individuals in a royal court who have accumulated considerable wealth, often playing significant roles in governance and politics.