True or False
1. ____ Companies use two separate accounts in order to report accounts receivable at its net realizable value.
Don't use plagiarized sources. Get Your Custom Essay on
Just from $13/Page
2. ____ Bad debt expense is reported on the balance sheet as a contra account to accounts receivable.
3. ____ The matching principle says that expenses should be recorded the same period as the revenues they help generate.
4. ____ Once an account has been written off, it can never be reinstated on the books, even if it is later collected.
5. ____ The net accounts receivable number on the balance sheet represents the exact amount the company will collect in cash.
6. ____ All companies perform their estimation of uncollectible accounts in the same manner.
7. ____ Frequently, bad debt expense and the ending balance in the allowance for doubtful accounts will differ.
8. ____ The older a receivable, the less likely it is to be collected.
9. ____ The higher that receivables turnover is, the slower the receivables are being collected.
10. ____ To make statements more accurate, bad debt expense is recorded when a specific account is deemed uncollectible and written off.