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

---

Definitions:

Experience Dissonance

A psychological phenomenon where there is a conflict between one's beliefs and behaviors, often causing discomfort that leads to an attempt to reduce the inconsistency.

Induced Compliance

A psychological phenomenon where individuals change their attitudes or beliefs to align with their externally influenced behaviors, especially in situations causing cognitive dissonance.

Dissonance Reduction

A psychological process by which individuals reduce the discomfort (dissonance) caused by conflicting beliefs, values, or attitudes, often by changing or rationalizing them.

Counterattitudinal Behavior

Engaging in behavior that is inconsistent with one's beliefs, attitudes, or values.