25	TRUE	FALSE	Using the allowance method of accounting for uncollectible receivables requires an estimate of the amount of receivables that will not be collected.
26	TRUE	FALSE	When a company receives payment from a customer whose account was previously written off, the customers account should be reinstated.
27	TRUE	FALSE	Accepting credit cards through a large bank, rather than offering credit directly to customers can help a business reduce its costs.
28	TRUE	FALSE	When a customers account, previously written off as uncollectible, is reinstated, the net realizable value of Accounts Receivables increases.
29	TRUE	FALSE	The specific identification inventory method is not practical for companies that sell many low-priced, high turnover items.
30	TRUE	FALSE	The inventory cost flow method a company chooses affects both the income statement and the balance sheet.
31	TRUE	FALSE	A companys gross margin reported on the income statement is not affected by the inventory cost flow method it uses.
32	TRUE	FALSE	A line of credit typically has an interest rate that is fixed (constant) for the length of the agreement
33	TRUE	FALSE	Vacation pay and sick leave are examples of contingent liabilities that a company generally should recognize on its financial statements.
34	TRUE	FALSE	For a long-term note payable, repaying a portion of principal along with interest payments is called loan amortization.
35	TRUE	FALSE	If a company determines that the likelihood of a future obligation arising from a contingent liability is possible but cannot estimate a cost, the company must record a liability on its balance sheet statement.
36	TRUE	FALSE	If a companys operating cycle is 90 days long, the company would use a period of one year to identify current assets and liabilities.
37	TRUE	FALSE	Interest and notes receivable are reported on the balance sheet in the order of liquidity.
On January 1, 2014, Darek Corporation issued a five-year note payable. The note requires an annual cash payment on December 31 of each year, which includes a principal reduction and interest. Indicate whether each of the following statements is true or false.
38	TRUE	FALSE	The entry to record the note issuance will increase assets and liabilities
39	TRUE	FALSE	The second payment will include more interest expense than the first payment
40	TRUE	FALSE	The note is an installment note payable
41	TRUE	FALSE	Each payment will result in a decrease in cash flow from operating activities and an increase in cash flow from investing activities
42	TRUE	FALSE	The first payment will reduce liabilities and net income of Darek