Matching Principle: The matching principle dictates that expenses should be recognized in the same period as the revenues they helped generate. By recognizing bad debt expense, companies align the ...

Debt falls on a spectrum. Mortgages and student loans can build long-term value, while high-interest credit cards and payday ...

Unlike the balance sheet approach, which emphasizes the collectability of accounts receivable, the income statement approach ...

A new rule will prohibit a certain type of bad debt from appearing on credit reports. The rule, announced by the Consumer Financial Protection Bureau, prohibits unpaid medical bills from appearing on ...