The direct write-off method is used for tax purposes but is generally not permitted for financial reporting.

Name: The direct write-off method is used for tax purposes but is generally not permitted for financial reporting.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The direct write-off method is not in accordance with Generally Accepted Accounting Principles (GAAP) for financial reporting because it does not match expenses with revenues in the same period. However, it is allowed for tax purposes.

The Direct Write-Off Method Is Used for Tax Purposes but Is