I. True/False

Indicate whether the sentence or statement is true or false.

____ 1. Certificates of deposit and money market savings certificates are examples of time deposits.

____ 2. A cash overdraft should be reported as a current liability.

____ 3. The method of estimating uncollectible accounts expense based on the accounts receivable balance emphasizes the determination of the net realizable value of the receivables.

____ 4. When there has been a failure to estimate uncollectible accounts accurately, resulting in an allowance balance that is clearly excessive or inadequate, an adjustment is in order. This adjustment would be considered a change in accounting estimate under FASB Statement No. 154.