Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true??

Accounting Mcqs
BILAL KHATTAK0

A. The bad debt expense is not matched with the related sales
B. Revenue is overstated in the year of sales
C. It violates the matching principle of accounting 
D. All of the above 

Related Mcqs:

  1. Which of the following statement is TRUE regarding debt??
  2. Which of the following statements is true with regard to written down value method of depreciation??
  3. Which of the following is true with respect to providing depreciation under diminishing balance method??
  4. Which of the following statements is /are true??
  5. While finalizing the current year‘s accounts, the company realized that an error was made in the calculation of closing stock of the previous year. In the previous year, closing stock was valued more by 50,000. As a result?
  6. Which of the following statements is/are true ??
  7. Which of the following is true??
  8. Which of the following strategy belongs to restrictive policy regarding size of investments in current assets??
  9. Which of the following is not true about opinion on financial statements??
  10. During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true??

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