Question

The matching principlea. requires that all credit losses be recorded when an individual customer cannot pay.b. necessitates the recording of an estimated amount for bad debts.c. results in the recording of a known amount for bad debt losses.d. is not involved in the decision of when to expense a credit loss.

Answer 1

Answer: A

Explanation: Matching concept of accounting is a practice in Accounting when all revenues and associated expenses relating to a particular period are recognised.

From the above question, credit losses are recorded when it is obvious that the individual customer cannot pay.