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    ylujan's Avatar
    ylujan Posts: 10, Reputation: 1
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    #1

    Oct 4, 2010, 05:44 PM
    Matching Principle?
    In accounting the matching principle requires: which of the following?

    The use of the direct write-off method for bad debts
    That bad debts not be written off
    That bad debts be disclosed in the financial statements
    That expenses be ignored if their effect on the financial statements are less important than revenues to the financial statement user
    The use of the allowance method of accounting for bad debts
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 4, 2010, 05:52 PM

    The direct write-off method does not follow GAAP. The method that follows the matching principle is an allowance method.
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