The direct charge-off method of recognizing uncollectible accounts is not in accordance with generally accepted accounting principles.

Name: The direct charge-off method of recognizing uncollectible accounts is not in accordance with generally accepted accounting principles.
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Question

Quizplus · Accepted Answer

The direct charge-off method violates the matching principle by not matching expenses with revenues in the same accounting period. Instead, the allowance method of recognizing uncollectible accounts is generally accepted by GAAP.

The Direct Charge-Off Method of Recognizing Uncollectible Accounts Is Not