TRUE OR FALSE:

1. Net sales plus sales returns and allowances and sales discounts equal gross sales

2. Short-term assets and short-term liabilities are temporary accounts

3. Under the perpetual inventory procedure, cost of goods sold is usually calculated at the end of the period

4. If the Income Summary account has a debit balance before it is closed, the company has a net loss for the period.

5. Revenue and expense accounts plus the income summary and dividend accounts are often called permanent accounts