Indicate whether the following are TRUE or FALSE.

.	The matching principle permits the use of the direct write-off method of accounting for uncollectible accounts when bad debts are very large in relation to a company's other financial statement items such as sales and net income.
_____	Deferred income is an example of a revenue account that increases equity.
_____.	A credit memo on a bank statement is an example of a timing difference.
_____.	Federal laws prohibit the selling of accounts receivables to factors.