One of the weaknesses of the direct write-off method is that it

understates accounts receivable on the balance sheet

violates the matching principle

is too difficult to use for many companies

is based on estimates

iolates the matching principle

Question

Mohamed Stout

Business

4 February, 10:14

One of the weaknesses of the direct write-off method is that it

understates accounts receivable on the balance sheet

violates the matching principle

is too difficult to use for many companies

is based on estimates

iolates the matching principle

+2

Answers (1)

Know the Answer?

Titan · Answer 1

violates the matching principle

Explanation:

The direct write-off method is an accounting method for recognizing bad debts expense arising from credit sales when individual invoices has been identified as uncollectible.

In Accounting, one of the weaknesses of the direct write-off method is that it violates the matching principle.

The direct write-off method is a method of accounting for uncollectible receivables.

One of the weaknesses of the direct write-off method is that itunderstates accounts receivable on the balance sheetviolates the matching principleis too difficult to use for many companiesis based on estimatesiolates the matching principle

One of the weaknesses of the direct write-off method is that it

understates accounts receivable on the balance sheet

violates the matching principle

is too difficult to use for many companies

is based on estimates

iolates the matching principle