Indicate whether the statement is true or false. 1. Cash is an asset that includes coins, currency, checks, and money orders. 2. Any activity that changes the value of a firm's assets, liabilities, or owner's equity is called a transaction. 3. An income statement is a summary of a business's revenue and expenses at a specific point in time. 4. Increases in expense accounts are recorded as credits. 5. Recording a credit to an accumulated depreciation account allows the original cost of the asset to be shown in the asset account. 6. All revenue accounts must be debited in the closing process. 7. The purchasing agent prepares a receiving report indicating the specific goods received and the quantity of goods. 8. A purchase of store supplies on account is recorded as a debit to the Purchases account and a credit to the Accounts Payable account 9. If a sale has terms of net cash, the seller allows no discount and the buyer must pay at the time of the purchase. 10. A sales journal is a special journal used only to record credit sales of merchandise. 11. The cash receipts journal would typically contain a Cash Debit column, a Sales Discounts Debit column, a Sales Credit column, an Accounts Receivable Credit column, and a General Credit column. 12. The entry to match the cost of a long-term physical asset with the revenue it helps to produce involves a debit to an accumulated depreciation account and a credit to a depreciation expense account. 13. At the end of an accounting period, a liability should be recorded for all salaries earned by employees but not yet paid by the employer. 14. The FICA-HI tax rate is applied only to the first $102,000 in earnings