1. Loan forgiveness is the cancellation of a receivable by a reporting entity, typically as an act of charity to the debtor. True or False

2. An analyst trying to identify earnings management should be concerned if the reserve for uncollectible accounts divided by gross accounts receivable experiences a sharp decline. True or False

3. If a firm assigns or pledges is accounts receivable to secure a loan, it typically pays a loan origination fee as well as interest. True or False

4. In the United States, companies can choose to use LIFO, FIFO or weighted average methods in accounting for their inventories. True of False

5. A LIFO liquidation is typically considered low quality earnings because it is typically a one time item. True or False