The Matching Principle Requires

question 174

Multiple Choice

The matching principle requires:

• A)That expenses be ignored if their effect on the financial statements are less important than revenues to the financial statement user.
• B)The use of the direct write-off method for bad debts.
• C)The use of the allowance method of accounting for bad debts.
• D)That bad debts be disclosed in the financial statements.
• E)That bad debts not be written off.

---

Definitions:

Stages

Distinct phases within a process of development or series of events, often implying sequential progress.

Navajo

A Native American people predominantly residing in the southwestern United States, known for their rich cultural history, language, and art.

Sioux

A group of Native American tribes known for their distinct culture, language, and history, primarily located in the Northern Plains of the United States.

Apache

Refers to the Apache HTTP Server, a widely used web server software, or can also indicate a group of culturally related Native American tribes.