Ask Question
BusinessBusiness
8 February, 00:40

One of the weaknesses of the direct write-off method is that it a. is too difficult to use for many companies b. is based on estimates c. understates accounts receivable on the balance sheet d. violates the matching principle

+2
Answers (2)
  1. 8 February, 01:44
    0
    Answer:D

    Explanation: It violates the matching principle
  2. 8 February, 02:35
    0
    The correct answer is letter "D": violates the matching principle.

    Explanation:

    The direct write-off method is an approach mainly implemented for tax purposes in front of bad debt (uncollectible accounts) by which no allowance account is used. This method consists of removing the account receivable that was not paid without estimating the bad debt. Then the unpaid amount is directly charged at the expense of the profits of the company.

    The direct write-off method delays the recognition of the bad debt even from one accounting period to another which violates the matching accounting principle that states all costs related to revenue are expensed in the same period.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “One of the weaknesses of the direct write-off method is that it a. is too difficult to use for many companies b. is based on estimates c. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Monty Manufacturing has old equipment that cost $52,000. The equipment has accumulated depreciation of $28,300. Monty has decided to sell the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.
Answers (2)
Which of the following are not checkable deposits? A) Savings accounts B) Small-denomination time deposits C) Negotiable order of withdrawal accounts D) All of the above E) Only A and B of the above
Answers (1)
Nguyen, Inc. has received a bid for 15 comma 000 units. The costing estimates show that the average cost per unit for this bid will be $ 700. The company uses costminusbased pricing and adds 20 % markup to total costs.
Answers (1)
When ivory started work at henderson textile co., she was amazed at its employees who would take thirty-minute restroom breaks, leave for the day at 2 p. m., and generally belittle the company's management.
Answers (1)
After arriving in the United States to begin work on his masters degree in business, Shoko found that the best way for her to fit into her new surroundings was to begin dressing like her fellow classmates and developing interests that were similar
Answers (2)
New Questions in Business
Spartan Corporation, a U. S. corporation, reported $5.4 million of pretax income from its business operations in Spartania, which were conducted through a foreign branch.
Answers (1)
According to the Belmont Report, implementing the principle of respect for persons involves: Making it clear to subjects that they may withdraw from a study. Ensuring that risks to subjects are no more than minimal.
Answers (1)
Bob Denton of Denton Pest Control buys equipment from Allied Tools because Allied hires him to spray its warehouse for insects periodically. This practice is an example ofA) cost-benefit trading. B) cooperative selling. C) reciprocity.
Answers (1)
The most prominent data manipulation language today is: A. Access B. DB2 C. SQL D. Query-building tool
Answers (1)
The revenue recognition principle dictates that revenue should be recognized in the accounting records: a. when cash is received b. in the period that income taxes are paid c. when it is earned. d. at the end of the month.
Answers (1)
Home » Business » One of the weaknesses of the direct write-off method is that it a. is too difficult to use for many companies b. is based on estimates c. understates accounts receivable on the balance sheet d. violates the matching principle
Sign Up Forgot Password?