All of the following statements are true, except:

1) The two types of accounts receivable systems discussed in the text are the balance-forward and open-item systems.

2) In a(n) recurring balance accounts receivable system, accounts receivable records consist of a customer's balance, categorized as current and past due, and current account activity, including such items as current charges, finance charges for past-due balances, and payments.

3) In a(n) post-billing billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification.

4) In a(n) pre-billing billing system, invoices are prepared upon acceptance of the customer order.

5) The acronym ACH stands for automated clearing house.