Read each sentence carefully and determine whether the statement is true or false.

1. The SCI is a picture of the results of operations of the company as of the cut-off date.

2. The major elements of the SCI are income and expenses.

3. Cost of sales is computed as cost of goods available for sale less ending inventory.

4. Expense recognition strictly requires the matching of expenses against revenue.

5. Goods returned by customers are immediately deducted to the sales revenue account.

6. In periodic inventory accounting, inventory is determined by conducting a physical count of merchandise owned.