True or False

1. Adjusting entries result in a better matching of revenues and expenses.

2. Accrued expenses are expenses not yet paid during the period but are owed and not yet recorded.

3. Accrued Revenue is revenue that has not yet been earned and not yet received nor recorded at the end of the period.

4. Liabilities are the owner's rights and claims to the property (assets) of a business.

5. The balance sheet is a financial statement that shows revenues earned and expenses incurred during a specified period of time.