The matching principle requires1 that expenses be ignored, Ask an Expert

Accounting

The matching principle requires:

1. That expenses be ignored if their effect on the financial statements are less important than revenues to the financial statement user

2. The use of the direct write-off method for bad debts

3. The use of the allowance method of accounting for bad debts

4. That bad debts be disclosed in the financial statements

5. That bad debts not be written off

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9795386

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