True or False
1. ____ Determining when to recognize revenue can be difficult for accountants.
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2. ____ Only permanent accounts are closed at the end of the financial statement cycle.
3. ____ Revenue may not be recorded until cash is collected.
4. ____ Some changes to accounts occur because of the passage of time.
5. ____ Accountants do not have to exercise much judgment because there are so many rules to follow.
6. ____ Assets, liabilities and owners’ equity accounts will start each financial statement cycle with the same balance they had at the end of the previous cycle.
7. ____ The word “accrue” means “to grow.”
8. ____ Companies have some discretion in how and when they record accruals.
9. ____ The purpose of adjusting entries is to bring the balance in temporary accounts to zero at the end of the reporting cycle.
10. ____ Only one trial balance is prepared during a financial statement cycle.