True or False Accouting Questions

1.Notes receivable are sometimes used to settle a customers accounts receivable.

4Question 3 options:

	True
	False

2.The allowance method is required by generally accepted accounting principles and the direct write-off method is not allowed.

Que stion 4 options:

	True
	False

3.Interest revenue collected on a note receivable is considered an additional sale. (okay, this is false because we arent the business of selling loans. So to us, this is an other income and not a sale - answer this false.)

Question 5 options:

	True
	False

4. Allowance for doubtful accounts is a contra-asset account with a credit balance.

Question 6 options:

	True
	False

5. The entry to write off an uncollectible account under the allowance method reduces net income.

Question 7 options:

	True
	False

6.It is possible to have a debit or credit balance in the allowance for doubtful accounts prior to adjustment.

Question 8 options:

	True
	False