The Matching Principle, as Applied to Bad Debts, Requires

question 101

Multiple Choice

The matching principle, as applied to bad debts, requires:

• A)That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
• 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:

George Edmund Haynes

An influential African American sociologist and social worker who co-founded the National Urban League, focusing on improving social conditions for African Americans in urban areas.

Eugene Kinckle Jones

An influential African American leader and one of the founding members of the National Urban League, devoted to improving socio-economic conditions for African Americans in the early 20th century.

Boll Weevil

A beetle that feeds on cotton buds and flowers, historically causing massive damage to the cotton industry.

Immigration

The action of coming to live permanently in a foreign country, often for work, family reunion, or as a refuge from conflict or persecution.