1.) Increases in liability accounts are recorded as debits. T/F

2.) When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current assets are added back to net income. T/F

3.) The total number of shares outstanding is always equal to the number of shares authorized. T/F

*note: I'm not sure if this is true or false, I know it's equal to the number or less than of shares authorized... thus would that make this false? sounds silly, but cannot guess which one

4.) Under a periodic inventory system, purchases, purchases returns and allowances, purchase discounts, and transportation-in transactions are recorded in the Merchandise Inventory account. T/F