True/False

1. ____ Determining when to recognize revenue can be difficult for accountants.

2. ____ Only permanent accounts are closed at the end of the financial statement cycle.

3. ____ Revenue may not be recorded until cash is collected.

4. ____ Some changes to accounts occur because of the passage of time.

5. ____ Accountants do not have to exercise much judgment because there are so many rules to follow.

6. ____ 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.

7. ____ The word accrue means to grow.

8. ____ Companies have some discretion in how and when they record accruals.

9. ____ The purpose of adjusting entries is to bring the balance in temporary accounts to zero at the end of the reporting cycle.

10. ____ Only one trial balance is prepared during a financial statement cycle.