The direct write-off method
A)must be used for income tax reporting in the United States.
B)is the method preferred by U.S.GAAP for financial reporting.
C)prevents management of earnings by the firm.
D)does not misstate the amount of accounts receivable on the balance sheet.
E)none of the above.

Question

Quizplus · Accepted Answer

The direct write-off method is not required for income tax reporting in the United States, but it is the method preferred by U.S. GAAP for financial reporting.

The Direct Write-Off Method