Which Method of Estimating the Amount of Bad Debts Expense

question 10

Multiple Choice

Which method of estimating the amount of bad debts expense violates the matching principle?

• A) percent-of-receivables
• B) percent-of-sales
• C) aging-of-receivables
• D) All of these methods comply with the matching principle

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Definitions:

Teratogens

Agents that can cause malformations or defects in an embryo or fetus when a mother is exposed during pregnancy.

Blastocyst

A stage of early embryonic development characterized by a hollow, fluid-filled structure of cells, occurring before implantation in the uterine wall.

Placenta

A structure that forms within the uterus during pregnancy, which supplies the fetus with oxygen and nutrients, while also eliminating waste materials from the fetus's bloodstream.

Endoderm

The endoderm is one of the three primary germ layers in the very early embryo, which gives rise to the gastrointestinal tract, the liver, and the pancreas among other internal organs.