The Expense Recognition (Matching) Principle, as Applied to Bad Debts

Multiple Choice

The expense recognition (matching) principle, as applied to bad debts, requires:

A) The use of the direct write-off method for bad debts.
B) That bad debts not be written off.
C) That bad debts be disclosed in the financial statements.
D) That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.
E) The use of the allowance method of accounting for bad debts.