TF1.The percentage of sales method is often referred to as aging the receivable.

TF2.If the maker of a note is unable to pay the amount due at maturity, the payee can allow the

maker to renew all or part of the note.

TF3.The difference between the maturity value of the note and the bank discount is called

proceeds

TF4.The direct write-off method has one advantage-it is very simple to apply.

TF 5.The matching concept states that expenses incurred to produce particular revenues

Should be matched with those revenues.

TF6.There are three methods of accounting for uncollectible accounts, the direct write-off

method, the allowance method, and the reserve method.

TF7. A non-interest bearing note includes an interest component.

TF8.The principal of the note is the face amount that the maker promises to pay at maturity.

TF9.The net amount received from the bank on a non-interest bearing note is called proceeds.

TF10 .Special discounts on list prices granted to different classes of customer are known as

trade discount.