Indicate whether each statement is true (T) or false (F).
(2) If a business's trial balance is "in balance", then the entity's accounting records are free of any errors.
(3) Contra-accounts are typically treated as offsets to related accounts for finan¬cial statement purposes.
(5) Journal entries may contain several debits and one credit, several credits and one debit, or multiple debits and multiple credits.
(6) A company that has consistently experienced net losses throughout its exis¬tence will have a credit balance in its Retained Earnings account.
(8) An Income Summary account is a permanent account that is used during the preparation of period-ending adjusting journal entries.
(9) A primary purpose of period-ending adjusting journal entries is to avoid vio¬lations of the revenue recognition and expense recognition rules.
(10) Privately-owned companies typically prepare a formal set of financial state¬ments for external users only once per year.
(11) The temporary accounts of a business must begin each accounting period with a zero balance.
(12) Most of the information needed by accountants to analyze business transac¬tions is found in source documents. .
(13) Double-entry bookkeeping is a financial record keeping system used only in the United States and a few European countries.© BrainMass Inc. brainmass.com October 9, 2019, 5:36 pm ad1c9bdddf