Questions: Question 44 The direct write-off method of accounting for uncollectible accounts emphasizes balance sheet relationships. is often used by small companies and companies with few receivables. emphasizes cash realizable value. emphasizes the matching of expenses with revenues.

The answer is: is often used by small companies and companies with few receivables.

The direct write-off method does not emphasize balance sheet relationships. Instead, it focuses on recognizing bad debts only when they are deemed uncollectible, which can lead to inaccuracies in the balance sheet until the write-off occurs.

This is correct. The direct write-off method is simpler and often used by small companies or those with few receivables because it does not require estimating uncollectible accounts at the end of each period. It records bad debt expense only when specific accounts are identified as uncollectible.

The direct write-off method does not emphasize cash realizable value. This method can result in accounts receivable being overstated on the balance sheet until the bad debt is written off.

The direct write-off method does not emphasize the matching principle. It records bad debt expense in the period when an account is deemed uncollectible, which may not coincide with the period in which the related revenue was recognized, thus violating the matching principle.