1. Deposits in transit are deposits that are not on the bank statement?

a. True

b. False

2. Outstanding checks are reconciling items for the companys books?

a. True

b. False

3. Errors can increase and or decrease the adjusted cash balance?

a. True

b. False

4. The bank knows about everything that is on the bank statement?

a. True

b. False

5. Net realizable value is Allowance- AR?

a. True

b. False

6. The direct write off method does not use an allowance account?

a. True

b. False

7. The aging method calculates the ending balance in the allowance account?

a. True

b. False

8. The percentage of credit sales method calculates bad debt expense directly?

a. True

b. False

10. Cost of goods sold + ending inventory = goods available for sale

a. True

b. false