Estimating Bad Debts Expense is an example of:
A)recording accrued expense.
B)the balance sheet approach.
C)the matching principle.
D)recording accrued sales.

Question

Quizplus · Accepted Answer

Estimating Bad Debts Expense is an application of the matching principle. This principle states that expenses must be recorded in the same accounting period as the revenues they help generate. Bad Debts Expense is an expense that arises as a result of credit sales, which are revenue-generating activities, and so it is recorded in the same accounting period in which those sales are made.

Estimating Bad Debts Expense Is an Example Of