The Matching Principle Requires Use of the Direct Write-Off Method

question 48

True/False

The matching principle requires use of the direct write-off method of accounting for bad debts.

Understand the principles that render contracts unenforceable due to illegality.

Analyze the consequences and enforcement of contracts involving illegal actions.

Distinguish between regulatory and revenue-raising licensing statutes and their impact on contract enforcement.

Recognize enforceability issues related to noncompetition clauses within contracts.

---

Definitions:

Woodworking

The craft of making objects, structures, or sculptures by shaping, cutting, and joining wood.

Table Saw

A woodworking tool consisting of a circular saw blade mounted on an arbor, used for making precise cuts in wood.

Consequential Damages

Compensation awarded in a legal case for losses that do not directly arise from the wrongful act but are a secondary result of the act, such as lost profits or loss of opportunity.

Unconscionable

Referring to a contract or deal that is so unjust or overwhelmingly one-sided in favor of the party with superior bargaining power that it is deemed unenforceable under the law.