Which One of the Following Is Not an Accurate Statement

question 141

Multiple Choice

Which one of the following is not an accurate statement regarding the direct write-off method of accounting for bad debts?

• A)The direct write-off method has some deficiencies when accounting for bad debts.
• B)The direct write-off method ignores the possibility that partial collection of a company's outstanding accounts receivable may occur.
• C)Under the direct write-off method,an expense is increased.
• D)The allowance method for bad debts violates the matching principle,but the direct write-off method does not.

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Definitions:

Nonprofit Conduct

Behaviors and practices that are considered appropriate, ethical, and effective within nonprofit organizations, focusing on mission fulfillment and accountability.

Performance Measurement

The process of evaluating the efficiency and effectiveness of actions or outputs.

Achieving Mission

The process of executing strategies and actions to fulfill the core purpose and goals of an organization effectively.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.