Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 6 - No. 46)

Which accounting concept or principle most directly supports the use of a provision for doubtful debts?

Going Concern

Materiality

Consistency

Matching Principle

Explanation

The matching principle dictates that expenses should be recognized in the same period as the revenues they help generate. Bad debt expense is matched to the revenue from sales made on credit.

Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 6 - No. 46)

Explanation

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