True/False Indicate whether the statement is true or false. 1. As we compare a merchandise business to a service business, the financial statement that changes the most is the Balance Sheet 2. An accounting system is the methods and procedures used to collect, classify, summarize, and report the businesses financial information 3. Transactions must first be recorded into the general journal before they can be entered into specialized journals. 4. In the Merchandising Income Statement, sales will be reduced by sales discounts and sales returns and allowances to arrive at net sales. 5. Safeguarding inventory and proper reporting of the inventory in the books are the reasons for controlling the inventory 6. Under the periodic inventory system, the merchandise inventory account continuously discloses the amount of inventory on hand. 7. The Sarbanes-Oxley Act requires that financial statements of all public companies report on management's conclusions about the effectiveness of the company's internal control procedures. 8. Money orders are considered cash