1. Both accounts receivable and notes receivable represent claims that are expected to be collected in cash only within one year

Group of answer choices

True

False

An aging schedule shows a required balance in Allowance for Doubtful Accounts of $9,500. If there is a credit balance in the allowance account of $3,500 prior to adjustment, the adjustment amount is $6,000.

Group of answer choices

True

False

The maturity date of a three-month note dated July 1 is October 1.

Group of answer choices

True

False

The maturity value of a $5,000 note is $5,250. If $100 of the interest has been accrued prior to maturity, the entry at maturity should include a credit to Interest Income for $150.

Group of answer choices

True

False

When direct write off method is used, the journal entry should be debiting provision for doubtful accounts and crediting accounts receivable

Group of answer choices

True

False

6. When the due date of a note is stated in days, the time factor in computing interest is the number of months divided by 365 days.

Group of answer choices

True

False

7. Current liabilities are expected to be paid within one year.

Group of answer choices

True

False

8. Allowance for Doubtful Accounts is an expense account, and its normal balance is debit.

Group of answer choices

True

False

9. Gains are recorded on exchanges of long-term assets.

Group of answer choices

True

False

10. Cost of goods sold is the difference between cost of goods available for sale and ending inventory.

Group of answer choices

True

False

11. Transactions that affect inventories have an effect on both the balance sheet and the income statement.

Group of answer choices

True

False

12. The more inventory a company has in stock, the greater the companys profit.

Group of answer choices

True

False