True/False Question:

____ 21. The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance.

____ 22. The matching concept requires expenses be recorded in the same period that the related revenue is recorded.

____ 23. The normal balance for all ledger accounts is the + side (increase side) of an account.

____ 24. Office Equipment is an example of a current asset account.

____ 25. On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount.

____ 26. Purchased goods in transit should be included in the ending inventory of the buyer if the goods were shipped FOB shipping point.

____ 27. GAAP does not allow the use direct write-off method of accounting for uncollectible accounts.

____ 28. To have a good, strong internal control system, employees assigned to the custody of specific assets must also have access to the records related to those assets.

____ 29. In a perpetual inventory system, when merchandise is returned by the buyer to the seller, the Merchandise Inventory asset account will be credited to record the return (on the books of the seller).

____ 30. Revenue is earned only when money is received from the customer.