The expense recognition principle, as applied to bad debts:

Multiple Choice

Requires that bad debts not be written off.

Favors the use of the direct write-off method for bad debts.

Favors the use of the allowance method of accounting for bad debts.

Requires that bad debts be disclosed in the financial statements.

Requires that expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.