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.

---

Definitions:

Family Income

The total amount of money earned by members of a family, contributing to their household.

Gay Parents

Refers to homosexual individuals or couples who are raising children in a family setting.

Lesbian Parents

Female same-sex couples who are raising children together.

Positive Relationships

Interactions between individuals that are characterized by mutual respect, trust, and affection, enhancing well-being.