The amount of inventory on hand is determined by taking a physical count of the merchandise on hand and calculating the cost of those goods.

True

False

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

True

False

Unearned revenue is a contra-revenue account.

True

False

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

True

False

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

True

False

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.

True

False

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

True

False

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

True

False

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

True

False

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

True

False

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

True

False

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

True

False

The work sheet is a formal financial statement.

True

False