The direct write-off method is inconsistent with the matching concept.

Name: The direct write-off method is inconsistent with the matching concept.
Brand: Quizplus
Rating: 4.7 (59 reviews)

Question

Quizplus · Accepted Answer

The direct write-off method violates the matching principle because it only records bad debts when they are deemed uncollectible, which may be in a different period than when the credit sale was initially recorded. This results in a mismatch between revenue and expenses, and therefore, the method is inconsistent with the matching concept.

The Direct Write-Off Method Is Inconsistent with the Matching Concept