Part 1: True or False (Two points each answer: twenty points in total) 1) Revenue is earned when accounts receivable are collected. 2) When the Cash Over and Short account has a credit balance, revenue is recognized.. 3) If an asset is sold above its book value, the seller will incur a loss. 4) Generally, all transactions are recorded in BOTH a special journal and the general journal. 5) Accumulated Depreciation is considered a contra account. 6) The Prepaid Insurance account has a normal credit balance. 7) Outstanding checks are checks the bank has paid and deducted from the customer's account 8) Depreciation is higher in earlier years & income is lower in later years when using straight line. 9) The Matching Principle mandates that all outgoing cash payments match the exact amount shown on incoming vendor (supplier) invoices. 10) Entries in the Sales Journal are posted to both the accounts receivable accounts in the general ledger AND to the individual accounts receivable accounts in the subsidiary ledger