True or False

1. TF Recording a credit in the accumulated depreciation account allows the original 2. T F Adjusting entries are required to correct errors made when recording routine 3. T F Unrecorded expenses result in an understatement of net income and owner's 4. TF Closing entries are to be posted to the ledger through the same process as any 5. T F After closing entries have been posted to the ledger, the owner's capital account 6. T F The purpose of the post-closing trial balance is to make sure that the ledger will 7. T F Cash includes currency, coins, checks, money orders, and postage stamps 8. T F Good internal controls over cash dictate that the person who has physical cost of the asset to be shown in the asset account transactions equity other journal entry should have a zero balance be in balance at the start of the next accounting period custody of the cash should be the only person to record the cash The Cash Short and Over account can be debited or credited depending on whether there is a cash shortage or a cash overage 9. TF Posting transactions from the combined journal should be done after each transaction is recorded in the journal 10. T F