Question \#1 - Multiple Choice - Circle the correct answer (29 Marks) 1) On the work sheet, a loss is indicated if the total of the Income Statement Debit column exceeds the total of the Income Statement Credit column. true false 2) If all columns balance upon completion of a work sheet, you can be sure that no errors were made in preparing the work sheet. true false 3) The closing process is a step in the accounting cycle that prepares accounts for the next accounting period. true false 4) After posting the entries to close all revenue and expense accounts, Hatfield Company's Income Summary account has a credit balance of $6,000, and the Hatfield, Withdrawals account has a debit balance of $2,500. These balances indicate that profit for the accounting period amounted to $3,500. true false 5) Non-current investments can include land not currently being used in operations. true false 6) Current liabilities include accounts receivable, unearned revenues, and taxes owed. true false 7) Z-Mart had a gross profit of $340,000 based on sales of $700,000. Its cost of goods sold is $350,000. true false 8) FOB shipping or FOB factory means ownership of goods transfers to the buyer at the buyer's place of business. true false 1) On the work sheet, a loss is indicated if the total of the Income Statement Debit column exceeds the total of the Income Statement Credit column. true false