Prior to recording adjusting entries at the end of an accounting period, some accounts may not show correct balances even though all transactions were properly recorded.

True False

The matching principle requires that expenses get recorded in the same accounting period as the revenues that are earned as a result of the expenses, not when cash is paid.

True False

Each adjusting entry will affect a balance sheet account.

True

False

Accrued revenues at the end of one accounting period are expected to result in cash collections in a future period.

True

False

Each adjusting entry affects one or more income statements account, one or more balance sheet account, and never cash.

True

False

Failure to record depreciation expense will overstate assets and understate expenses.

True

False

A contra account is an account linked with another account; it is added to that account to show the proper amount for the item recorded in the associated account.

True

False