True or false:

1) when bad debts exceed the amount estimated and written off in the previous accounting period, the company is required to issue amended financial statements?

T/F

2) other things being equal, a two year note receivable should yield more interest revenue than a one year note )

T/F

3) the receivable turnover ratio is calculated using the average net account receivable

T/F

4) in normal circumstances, the allowance for doubtful accounts for a company should be fairly consistent percentage of gross accounts receivable.

T/F

5) if the receivable turnover ratio rises significantly, the increase may be a signal that the company is extending credit to high risk borrowers or allowing an overly generous repayment schedule

T/F