Question: The expense recognition principle, as applied to bad debts: Multiple Cholce Requires that expenses be lgnored if thelr effect on the financlal statements is unimportant
The expense recognition principle, as applied to bad debts:
Multiple Cholce
Requires that expenses be lgnored if thelr effect on the financlal statements is unimportant to users' business decisions.
Favors the use of the direct wilteoff method for bad debts.
Favors the use of the allowance method of accounting for bad debts.
Requires that bad debts be disclosed in the financlal statements.
Requires that bad debts not be written off.
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