Accounts payables are amounts owed by customers on account, whereas, accounts receivables is money owed by a business to its suppliers *

True

False

The current market price (present value) of a bond is a function of three factors: dollar amounts to be received, length of time until amounts are received, and the market rate of interest. *

True

False

A company has net credit sales of $900,000 for the year and it estimates that uncollectible accounts will be 2% of sales. If Allowance for Doubtful Accounts has a credit balance of $1,000 prior to adjustment, its balance after adjustment will be a credit of $19,000. *

True

False

When treasury stock is sold for an amount greater than cost, the difference should be credited to Gain on Sale of Treasury Stock and reported as other income on the Income Statement. *

True

False