Question: The direct write-off method is consistent with the matching accounting principle while the allowance method is not (a) True (b) False AppendixLO1

The direct write-off method is consistent with the matching accounting principle while the allowance method is not

(a) True

(b) False AppendixLO1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Principles Financial Accounting Questions!

Q:

4 The direct write-off method is consistent with the matching accounting principle while the allowance method is not (a) True (b) False

Q:

The direct write-off method is consistent with the matching accounting principle while the allowance method is not consistent with it

Q:

Multiple Choice Question Select the right answer (only one possible answers, unless otherwise stated). 1 Doubtful debts represent (a) Liabilities which are challenged by one of the parties (b)...

Q:

Because it is easier to use, the direct write - off method for uncollectible accounts is typically used instead of the allowance method. True or False

Q:

what is the nominal rate of the 1. Limitations of internal control include: A. Human error and fraud. B. Fatique C. Cost-benefit standard. D. All of these answers are correct. 2. Risks involved in...

Q:

1. Ray Lumber Company collects $500 on an account that had been directly written off earlier the same year in the amount of $1,000. The journal entry to record the reinstatement transaction would...

Q:

1. The use of the allowance method of accounting for bad debts is preferred over the direct write-off method because of the: (a ) matching principle (b) historical cost principle (c) revenue...

Q:

20. Two different methods of accounting for Uncollectible Receivables are A. Direct write-off Method and Allowance Method B. Bad Debt Expense Method and Allowance Method c. Uncollectible Method and...

Q:

Need Help solving as much problems of these as possible. Intermediate 1 Accounting. I only have ONE HOUR to complete. Timed. Help Please highlight in Bold or Red the answers. 1.Only extermally...

Q:

On September 1 of the current year, Prepaid Rent was debited $6,000 for 6 months of rent, in advance. The amount of the adjusting entry on December 31 is? $6,000. $0. $2,000. $4,000. On November 1 of...

Q:

When this question was last asked it was wrong! Write a reference in (VBA code to each) of the following ranges. You can assume that each of these ranges is in the active worksheet of the active work...

Q:

Consider 2-methylbutane (isopentane) Sighting along the C2C3 bond: (a) Draw a Newman projection of the most stable conformation. (b) Draw a Newman projection of the least stable conformation. (c)...

Q:

The budgetary plan that reports the units to produce for a manufacturing compary is called a Production budget Capital expenditures budget Cash budget Siles budget

Q:

Which of the elements scandium, molybdenum, and copper is most likely to form a chloride with the formula MCl 4 ? Explain your decision.

Q:

Ski-Doo Company manufactures, markets, and sells snowmobiles and snowmobile equipment and accessories. The average total assets for Ski-Doo is $3,000,000. In its most recent year, Ski-Doo reported...

Q:

1. Compute the ratio of segment revenue divided by segment assets for each of the segments of Apple and Google for the most recent year shown. 2. Interpret and comment on your results from part 1....

Q:

1. Compute the ratio of segment revenue divided by segment assets for each of the segments of Apple and Google for the most recent year shown. 2. Interpret and comment on your results from part 1....

Q:

Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $891. Selected data for the company's operations last year follow:...

Q:

Boris is in business as a sole trader. The following balances were extracted from his books on 30 April 2018. $ Revenue 419,000 Purchases 242,000 Returns 7,800 6,200 Inventory at May 1, 2017 28,900...

Q:

Cheyenne, Inc. has the following information for the current fiscal year: Total Sales $404000 COGS Variable 150000 COGS - Fixed 52000 SG&A Variable 27900 SG&A - Fixed 16000 The gross margin for...