Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses trom uncollectible accounts. The

company's independent accountants did not protest when, contrary to GAAP, the company recorded bad debt expense only when specific

accounts were determined to be uncollectible, rather than use an allowance for uncollectible accounts. The concept demonstrated is:

Multiple Choice

Comparability.

Materiality.

Cost$-$effectiveness.

Faithful representation.