True or false

inancial Accounting 2 - Simple Book Publishing 1.8 3. Revenue may not be recorded until cash is collected. 4. A transaction is any event that has a financial impact on a company. 5. An expense account is increased with a credit. 6. Examples of accrued expenses include salary, rent, and interest. 7. Posting refers to process of recording journal entries. 8. A company must recognize an accrued expense as incurred. 9. The matching principle states that expenses should be recognized in the same period as the revenues they help generate. 10. Unearned revenue is a type of revenue account. 11. Determining when to recognize revenue can be difficult for accountants. 12. Only permanent accounts are closed at the end of the financial statement cycle 13. Some changes to accounts occur because of the passage of time. 14. Accountants do not have to exercise much judgment because there are so many rules to follow. 15. Assets, liabilities and owners' equity accounts will start each financial statement cycle with the same balance they had at the end of the previous cycle. 16. The word "accrue" means "to grow." 17. Companies have some discretion in how and when they record accruals. 18. The purpose of adjusting entries is to bring the balance in temporary accounts to zero at the end of the reporting cycle. 19 . Only one trial balance in repared during a financial statement cycle