The matching principle requires use of the direct write-off method.

Name: The matching principle requires use of the direct write-off method.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The matching principle does not specifically require the use of the direct write-off method. However, many companies may choose to use this method for simplicity or because it aligns with their accounting policies. The matching principle simply requires that expenses be recognized in the same period as the related revenues.

The Matching Principle Requires Use of the Direct Write-Off Method