Question

For a company with significant uncollectible​ receivables, the direct​ write-off method is unsuitable because​ ________. A. it uses estimates for determining the bad debt expense B. it violates the matching principle C. companies are not able to track customer payment histories D. it overstates liabilities on the balance sheet

Answer 1

Answer:

The correctt answer is B. it violates the matching principle

Explanation:

The principle of correspondence, similar to the realization of income, is another considered important in the determination of accounting profits. According to the principle of correspondence, all costs and expenses related to the generation of income are made by doing the same with the latter. In other words, correspondence of income expenses is established, deducting those from these.