The allowance method complies with the generally accepted accounting principle of matching.

Name: The allowance method complies with the generally accepted accounting principle of matching.
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Question

Quizplus · Accepted Answer

The allowance method is an accounting practice that matches estimated losses from uncollectible accounts with revenues in the same accounting period. This complies with the matching principle, which states that expenses should be recognized in the same period as the related revenues.

The Allowance Method Complies with the Generally Accepted Accounting Principle