T or F:

Both the beginning and the ending merchandise inventory amounts are posted to the income summary account.

Unearned revenue is a contra-revenue account.

Cash received in advance for performing a service or delivering a product is called prepaid revenue.

The transaction to record unearned revenue results in an increase in a liability account.

A net loss results if the total of the debit column of the Balance Sheet section exceeds the total of the credit column of the Balance sheet section.

Adjusting entries entered on the worksheet and recorded in the general journal do not have to be posted to the general ledger.

A contra-cost account is given a ".1" extension to its related ledger account's number.

When part of the amount of unearned revenue has been earned, the unearned revenue account must be adjusted.

Both the debit and credit amounts for the income summary account must be extended in the work sheet.

Journalizing adjustments from the work sheet has no effect on the actual accounts in the general ledger.

In journalizing adjusting entries, Merchandise Inventory is credited for the amount of ending inventory.

The work sheet is a formal financial statement.

The difference between the Income Statement and Balance Sheet debit and credit columns on the work sheet represent the net income or the net loss.