rt I: Write True if the statement is correct and False if the statement is not co
F1. A group of related accounts that comprise all accounts of a specific business is
F
called the ledger.
2. The capital account of a sole proprietorship at the end of the period doesn't show the
ending balance of capital that should appear on the balance sheet if it is before
closing
3. During closing, the Income Summary account is credited and capital is debited if
there is net loss for the year.
4. When preparing bank reconciliation for a period, the depositor has to notify the bank
if there are any deposits in transit so that the bank will add them within that period.
5. When goods are sold FOB shipping point, the goods become the property of the
buyer only when the buyer receives them at destination.
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