1. Dividends or interest received on trading securities is reported as income and included in the income statement.

Select one:

True

False

2. The direct write-off approach is an unacceptable accounting practice if the level of uncollectibles is significant in amount.

Select one:

True

False

3. Aging of accounts receivable is an income statement approach to estimating bad debts.

Select one:

True

False

4. An increase in the days outstanding in receivables could be indicative of declining business conditions.

Select one:

True

False