Name: True-False Statements 1. Date: 1 POINT EACH A bank reconciliation is generally prepared by the bank and sent to the depositor along with cancelled checks. To obtain maximum benefit from a bank reconciliation, the reconciliation should be prepared by an employee who has no other responsibilities pertaining to cash. 2. 3.-- Companies prepare a trial balance at the end of an accounting period and it is useful in preparing financial statements. An entry that requires more than two accounts is a compound entry The drawing account is an income statement account like expenses. 4. 5. Accounts Payable is a liability with a credit balance. Debit means to put on the left side and Credit means to put on the right side. The normal balance of all Accounts is a debit The procedure for transferring journal entries to the T- Accounts 6. 7. 8. 9. is called Posting. 10. Sole Proprietorship is a business owned by a single individual