Question: The direct write - off method is not allowed under GAAP because it violates the: Multiple Choice cost principle. revenue recognition principle. sales method. expense

The direct write-off method is not allowed under GAAP because it violates the:
Multiple Choice
cost principle.
revenue recognition principle.
sales method.
expense recognition principle ("matching").

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 Accounting Questions!

Q:

35. Wechsler Company uses the aging of accounts receivable method. The company performed an aging of accounts receivable on December 31 and gathered the following information: Accounts receivable...

Q:

The direct write - off method is not allowed under GAAP because it violates the cost principle aging principle expense recognition ( matching ) principle revenue recognition principle sales method

Q:

I am stumped on 5 of my accounting homework problems. I have re-worded them to avoid any copyright issue. any help would be very helpful! [1] If the receivables turnover ratio rises signicantly, the...

Q:

Question 3 1 pts Which Accounting Principle is violated by the Direct Write Off Method? The Matching ( Expense Recognition ) Principle The Revenue Recognition Principle The Measurement ( Cost )...

Q:

The direct write-off method is not allowed under GAAP because It violates the: 16 Multiple Choice 00:08:15 sales method. + 100% revenue recognition principle. LiD expense recognition principle...

Q:

37. The Allowance for Doubtful Accounts A. B. is a contra-revenue account. has a normal debit balance. is used for the direct write-off method. C. D. is reported on the Income Statement as a...

Q:

Question 1 Credit sales during the year were $425,000, the Allowance for Uncollectible Accounts had a beginning of year balance of $2,500 debit, accounts written off during the year were $2,200. It...

Q:

Today 5 9 : 5 3 AM Question 1 e 9 : 3 4 AM No addition.. Yesterday Review: Hampton... Yesterday This is a c . . . Midterm Exam Rev... Yesterday Frank Jen... Case study report... Yesterday Now we w ....

Q:

Which Accounting Principle is violated by the Direct Write Off Method? Group of answer choices The Full Disclosure Principe The Revenue Recognition Principle The Measurement ( Cost ) Principle The...

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:

Patton Paints Corporation has a target capital structure of 40% debt and 60% common equity, with no preferred stock. Its before-tax cost of debt is 12%, and its marginal tax rate is 40%. The current...

Q:

How can diversity give a company a competitive edge? Can diversity really make a difference in the bottom line? If so how?

Q:

How does owerextrapolation explain long term reversal of stock prices? irvestors extrapolate low eamings in the past too far into the future and earnings miss in the future. investors extrapolate...

Q:

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...