TRUE OR FALSE

1. The post-closing trial balance of a merchandising firm similar to that of a service type.

2. A closing entry is not necessary for the preparation of a post-closing trial balance.

3. A post-closing trial balance leaves behind the nominal accounts.

4. The nominal accounts and amounts in the immediately preceding year are carried forward to the current year.

5. Reversing entry is part of closing entry.

6. The purchases account is closed to merchandise inventory account.

7. Under the periodic inventory system, the merchandise inventory account appears in the closing entries made at the end of the period.

8. When preparing closing entries under the periodic inventory system, sales and purchase returns and allowances are both closed in the same entry.

9. Sales discount is not part of the closing entry.

10. Purchase discount is a real account.