Indicate whether each of the following statements is true or false.
a. Prepaid rent appears on the balance sheet.
b. The book value of a long-term asset appears on the statement of changes in stockholders’ equity.
c. Supplies expense appears on the statement of cash flows.
d. Net income appears on the income statement and the statement of changes in stockholders’ equity.
e. Depreciation expense appears on the income statement and in the operating activities section of the statement of cash flows.
f. Accrued salaries payable appears on the balance sheet.
g. The amount of accumulated depreciation is added to the corresponding asset account in order to determine the book value of the asset.
h. The unearned revenue account appears on the income statement.
i. Depreciation expense reduces net income but has no effect on the statement of cash flows.
j. A decrease in unearned revenue is normally offset by an increase in retained earnings.
k. Dividends are deferrals because they delay the recognition of expenses.