True or False Accounting Questions

7.When a previosly written off account is collected, the first of a two step process is to reverse the write off, and then receipt the cash collected.

Question 9 options:

	True
	False

8.A claim supported by a note has a stronger legal claim than an account receivable.

Question 10 options:

	True
	False

9.Credit limits are determined by the credit worthiness of the customer.

Question 11 options:

	True
	False

10.The allowance method estimates uncollectible accounts expense prior to write-off.

Question 12 options:

	True
	False

11.The direct write-off method and the allowance methods are different names for the same accounting technique.

Question 13 options:

	True
	False

12.Businesses grant credit in order to attract customers that would not otherwise purchase the companys goods and services.

Question 14 options:

	True
	False

13.The number of days sales in receivables is a measure of the time receivables have been outstanding.

Question 15 options:

	True
	False