Which accounting concept can be used by some companies to justify the use of the direct write-off method of accounting for uncollectible accounts?
A)The entity concept.
B)The materiality concept.
C)The going concern concept.
D)The monetary principle.

Question

Quizplus · Accepted Answer

The materiality concept suggests that insignificant items may be treated in a simplified manner. Some companies may consider their uncollectible accounts to be immaterial, and therefore may justify using the direct write-off method, which is a simplified method that only writes off bad debts when they are deemed uncollectible.

Which Accounting Concept Can Be Used by Some Companies to Justify