True or False Use T or F to indicate whether each of the following statements is true or false: 1. Retained earnings should be accounted for as a current liability item. 2. Deferred revenue will appear on the income statement. 3. Machinery used in the business should be recorded as a noncurrent asset item. 4. A company that employs cash-basis accounting cannot have a Prepaid Expense account on the balance sheet. 5. From a single balance sheet, you can find stockholders' equity for a period of time but not for a specific day. 6. It is not possible to determine changes in the financial condition of a business from a single bal- ance sheet.