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Financial and Managerial Accounting: The Basis for Business Decisions, 12/e
Jan R. Williams, University of Tennessee
Susan F. Haka, Michigan State University
Mark S. Bettner, Bucknell University
Robert F. Meigs
Financial Assets
True/False Quiz
Please answer all questions
1
In the preparation of a bank reconciliation, the presence of a number of large outstanding checks would suggest that the balance per the bank statement is probably larger than the balance per the depositor's records.
A)
True
B)
False
2
The direct write-off method of recognizing uncollectible accounts expense has the advantage of matching revenue with expenses of the same accounting period.
A)
TRUE
B)
FALSE
3
Collection of an account receivable increases a company's cash flow as well as its net income.
A)
True
B)
False
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