The Materiality Constraint Permits the Use of the Direct Write-Off

question 2

True/False

The materiality constraint 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.

---

Definitions:

Substance Abuse Programs

Structured treatments and interventions designed to help individuals overcome dependency on drugs, alcohol, or other harmful substances.

Low-Income Mothers

Women with children who have financial earnings below a certain threshold, often struggling to provide for their families.

Child Maltreatment

Abuse or neglect of a child by a parent, guardian, or other caregiver, resulting in potential or actual harm to the child.

Child Abuse

Any action by another person – adult or child – that causes significant harm to a child, including physical, psychological, or sexual maltreatment.