Question: The expense recognition principle, as applied to bad debts: Multiple Choice Requires that bad debts be disclosed in the financial statements. Favors the use of

The expense recognition principle, as applied to bad debts:
Multiple Choice
Requires that bad debts be disclosed in the financial statements.
Favors the use of the allowance method of accounting for bad debts.
Requires that bad debts not be written off.
Favors the use of the direct write-off method for bad debts.
Requires that expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
Multiple Choice
Debit Interest Revenue $500; credit Notes Receivable $500.
Debit Cash for $250; credit Notes Receivable $250.
Debit Notes Receivable $500; credit Interest Revenue $500.
Debit Interest Receivable $500; credit Interest Revenue $500.
Debit Interest Receivable $250; credit Interest Revenue $250.

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