Determine whether each of the following is true or false.

1. If the period revenues are less than the period expenses,and there are no gains or losses, then Retained Earnings

must decrease during the period.

2. In a post-closing trial balance, revenue and expense

accounts must have a zero balance..

3. If debits equal credits on the trial balance, you stillcannot know with certainty that your records are correct.4. At the end of the first year of ownership of a long-termasset, if an accelerated depreciation method is used, thenet book value of the asset will always be equal to or less

than the market value of the asset.

5. If prices are decreasing then FIFO, compared with LIFO, will show a higher net income for the period.6. At the end of the second year of ownership of a long-term asset, before the closing entry is made, the balance in the accumulated depreciation account must be equal to or greater than the balance in the depreciation expense account.