The Direct Write-Off Method

question 50

Multiple Choice

The direct write-off method:

• A)ignores the matching principle.
• B)is an acceptable alternative method of recognizing bad debt expense under GAAP.
• C)results in higher bad debt expense for most companies.
• D)may only be used by companies that do not extend credit to their customers.

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Definitions:

Stress Reactions

Physical, mental, and emotional responses or adaptations by an individual to perceived threats or challenges.

Immune Responses

The reactions of the immune system in defending the body against pathogens, such as bacteria, viruses, and foreign substances.

Stressors

Events or conditions that cause stress or tension by challenging an individual's ability to cope.

Adaptation-Level Phenomenon

The tendency of humans to quickly adjust to and normalize new stimuli or changes, using them as a new benchmark or standard.