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:

Retention

The act of keeping or holding onto something or someone, such as information in memory or employees in a workplace.

Memory

The faculty by which the mind stores and remembers information.

False Beliefs

False beliefs are convictions or opinions that are not aligned with fact or reality, often stemming from misinformation, misunderstanding, or cognitive distortions.

Deception

The act of misleading or deceiving others through false representations or statements to hide the truth.