Part 6: True/False (12 Points) 1. T F The collection period of accounts receivable is usually long, and therefore, it is classified as a long- term asset on the balance sheet. 2. T F In a period of rising costs, the first in, first-out (FIFO) method results in a lower cost of goods sold and a higher gross profit than the last-in, first-out (LIFO) method. 3. T F Journal entries are required if the bank reconciliation includes outstanding checks. 4. T F Because of the revenue recognition principle, interest on a note receivable is recorded in the year in which it is earned 5. T F When using the weighted-average inventory costing method in a perpetual inventory system, a new weighted average cost per unit is computed at the end of each quarter. 6. T F Cost of Goods Sold appears on a multi-step income statement but not on a single-step income statement