Please indicate TRUE or FALSE at the end of the statement.

1. The first step in the accounting cycle is transaction analysis.

2. An account is a detailed record of increases and decreases in a specific asset, liability or equity item.

3. A ledger is a type of account.

4. Goods sold on credit to customers are called accounts payable.

5. As prepaid assets are used up, the costs of the assets become expenses.

6. Withdrawals are a type of transaction that affects equity.

7. A building is an example of an asset that does not provide any benefit to its owner.

8. To make it easier for the bookkeeper, the cost of land is separated from the cost of buildings located on the land.

9. Unearned revenues are assets, because a service or product is owed to the customer.

10. Cash withdrawn by the owner of an unincorporated business in the form of a monthly salary should be treated as an expense of the busines