The Matching Principle Permits the Use of the Direct Write-Off

question 194

True/False

The matching principle permits the use of the direct write-off method of accounting for uncollectible accounts when bad debts are very large in relation to a company's other financial statement items such as sales and net income.

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Definitions:

Sample Size

The number of observations or subjects used in a study or represented in a statistical sample.

Smaller

A comparative term indicating lesser in size, amount, or degree relative to something else.

Equal

A term indicating that two values, variables, or expressions are of the same value or are equivalent in terms of a particular property.

Statistical Inference

The method of applying data analysis techniques to infer characteristics of a base probability distribution.