Which of the following is not a reasonable matching?
$$\begin{array} { l l l }
&\underline{ \text { Item }} &\underline{ \text { Related Conservative Pollcy }} \
\text { I. }& \text {inventory}& \text {LIFO}\
\text { II. } & \text {fixed assets} & \text { accelerated depreciation } \
\text { III. } & \text { intangible assets } & \text { short period of time for amortization } \
\text { IV. } & \text { pensions } & \text { short period of time to amortize prior service cost } \
\text { V } & \text { receivables } & \text { direct write-off method }
\end{array}$$

A)I
B)II
C)III
D)IV
E)V

Question

Which of the following is not a reasonable matching?
$$\begin{array} { l l l } 
 &\underline{ \text { Item }} &\underline{ \text { Related Conservative Pollcy }} \
\text { I. }& \text {inventory}& \text {LIFO}\
\text { II. } & \text {fixed assets} & \text { accelerated depreciation } \ 
\text { III. } & \text { intangible assets } & \text { short period of time for amortization } \
\text { IV. } & \text { pensions } & \text { short period of time to amortize prior service cost } \
\text { V } & \text { receivables } & \text { direct write-off method }
\end{array}$$

A)I
B)II
C)III
D)IV
E)V

Quizplus · Accepted Answer

The direct write-off method for receivables is not considered a conservative accounting policy because it recognizes bad debt expense only when specific accounts are deemed uncollectible, which may delay the recognition of expenses. Conservative accounting would prefer the allowance method, which estimates and matches bad debt expense to the periods in which the revenues were earned.

Which of the Following Is Not a Reasonable Matching A)I B)II C)III D)IV E)V

Which of the Following Is Not a Reasonable Matching A)I
B)II
C)III
D)IV
E)V