The matching rule relates to credit losses by stating that Uncollectible Accounts Expense should be recorded
A)in the period of the loss.
B)for an exact amount.
C)in the same period as allowed for tax purposes.
D)in the period of the sale.

Question

Quizplus · Accepted Answer

The matching principle in accounting dictates that expenses should be recorded in the same period as the revenues they help to generate. Therefore, Uncollectible Accounts Expense, which arises from sales on credit, should be recorded in the period of the sale to match the expense with the revenue it helped generate.

The Matching Rule Relates to Credit Losses by Stating That