1. Accounts receivable less the allowance for uncollectible accounts is known as net realizable value, or the amount of cash expected from the collection of present customer balances.

Select one:

True

False

2.

Cost of goods sold is subtracted from net sales to arrive at gross profit.

Select one:

True

False

3. A cash disbursement system with proper internal control should include a procedure which requires all significant disbursements to be made by check.

Select one:

True

False

4. In preparing a bank reconciliation, outstanding checks should be added back to the ending balance per the bank statement.

Select one:

True

False