Indicate whether each of the following statements is true or false:

1. The principle of conservatism requires that accountants understate the companys asset valuations and reported profits.

2. The materiality principle suggests that transactions involving minor dollar amounts need not be processed.

3. The general ledger is that set of accounting records from which figures for the balance sheet and income statement are drawn.

4. Copies of checks sent to vendors to settle accounts payable represent important source documents.

5. The realization principle requires that orders from customers not be recorded in the sales journal at the time the order is received.

6. The consistency principle requires that all companies within a particular industry follow consistent accounting procedures.