TRUE OR FALSE

1. The SCI is a picture of the results of the operations of the company as of the cut-off date.

2. The major elements of the SCI are income and expenses.

3. Cost of sales is computed as the cost of goods sold available for sales less ending inventory.

4. Goods returned by the customer are immediately deducted from the sales revenue account.

5. Expense decreases assets and therefore has credit normal balance.

6. Depreciation Expense is a line account found in an SCI prepared following the multi-step format.

7. Revenue increases equity and therefore has a credit normal balance.

8. Accumulated depreciation appears on the income statement.

9. The excess of expense over revenue is called loss.

10. The focal point of the accounting cycle is the financial statement.