I. True/False Indicate whether the sentence or statement is true or false. ____
ID: 2579005 • Letter: I
Question
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.
Explanation / Answer
1. Certificates of deposit and money market savings certificates are examples of time deposits.
True
2. A cash overdraft should be reported as a current liability.
True
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.
True
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.
False