True or False: Place your answer on worksheet Q3 T F Cost of goods sold is a contra revenue account. NI 2 F Net loss is the excess of expenses over revenues for the accounting period. f F The basic steps in the recording process are (1) analyze each transaction, (2) enter the transaction in a joumal, and (3) transfer the Journal Information to the appropriate ledger accounts. When the columns of the trial balance equal each other, it proves no errors occurred in recording and posting. 4 T LL F 5 T F Cost less accumulated depreciation is a measurement of the current value of an asset such as equipment or a building. 6 T T F A ledger is the entire group of accounts maintained by a company. 7 T F The Drawings account is closed directly to the Owner's Capital account 8 T F F Adjusting Entries always affect cash. 9 T F An important purpose of closing entries is to set permanent account balances to zero in order to begin the next period. 10 F The FIFO method assumes that costs for the most recently purchased items are recovered first