📒
Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true?
Accountingmedium
AThe bad debt expense is not matched with the related sales because the expense is written off in the year of occurrence and it is not matching with the related sales.
BRevenue is overstated in the year of Sales as a result not making any provision for possible loss on account of non- recoverable account.
CIt violates the matching principle of accounting as the expense of bad debt is not matched for the same period of income. Thus,
is the correct answer.
Correct Answer: D. is the correct answer.
Related Questions
Accounting
The assets which have some market value are called ____________?
Accounting
Assets having physical existence are called ___________?
Accounting
When owner withdraw cash for its private use, it is called ___________?
Accounting
Building and furniture are called ____________?
Accounting
Which of the following is true about a trial balance?