TRUE OR FALSE

Statement #1 All adjusting entries affect both the balance sheet and the income statement, but never the cash account.

Statement #2 The General Journal records the running totals of balances in individual accounts such as Cash, Accounts Payable, and Common Stock.

Statement #3 Closing entries are required in order to close the books at the end of each fiscal year so that the revenue, expense, and dividend accounts will have $0 balances in the general ledger when the next accounting period begins.

Statement #4 Journal entries can never involve debit or credit to more than one account each because this would cause an imbalance in the balance sheet equation (A = L + SE).