The common stock account is increased by credits

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1. The common stock account is increased by credits. True False

2. The ledger is the entire group of accounts maintained by a company. True False

3. Transferring journal entries to the ledger accounts is called posting and should be per¬formed in chronological order. True False

4. The revenue recognition principle requires that companies recognize revenue in the period in which cash was received rather than when the performance obligation is satisfied. True False

5. Payments of expenses that will benefit more than one accounting period are referred to as prepaid expenses. True False

6. Depreciation is the process of allocating the cost of an asset to expense over its useful life in a rational and systematic manner. True False

Reference no: EM131259980

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