Direct Write-Off Method Violates the Matching Principle

question 35

True/False

Direct write-off method violates the matching principle.
BT: Knowledge

---

Definitions:

Unearned Revenue Account

Refers to money received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.

Debit Balance

An accounting term indicating that a particular account has more debits than credits, often referring to an account's overall debt or expenditure.

Credit Balance

In accounting, it refers to the balance on the right side of a ledger account, indicating the amount that a company owes or liabilities.

Revenue Account

An account that tracks the income generated from normal business operations, including the sale of goods and services.