The Expense Recognition (Matching) Principle, as Applied to Bad Debts

question 49

Multiple Choice

The expense recognition (matching) principle, as applied to bad debts, requires:

• A) The use of the direct write-off method for bad debts.
• B) That bad debts not be written off.
• C) That bad debts be disclosed in the financial statements.
• D) That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
• E) The use of the allowance method of accounting for bad debts.

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