Please respond with True or False

1) When shareholders contribute capital to a company, earned capital increases because the company has earned the shareholders' investments.

2) Revenues and expenses affect the income statement but not the balance sheet.

3). Revenue is typically recorded as earned when cash is received because that is when the company can measure the revenue objectively.

4). Expenses that are paid in advance are held on the balance sheet until the end of the accounting period when they are transferred to the income statement with accounting adjustments.

5).Accrual accounting recognizes revenues only when cash is received and expenses only when cash is paid.