1. For most large businesses, the cash basis of accounting will provide accurate financial statements for user needs.

True

False

2. Adjusting entries affect balance sheet accounts at the exclusion of income statement accounts.

True

False

3. The income statement should be prepared

a) after the statement of owner's equity and balance sheet

b) after the statement of owner's equity and before the balance sheet

c) before the statement of owner's equity and balance sheet

d) after the balance sheet and before the statement of owner's equity

4. An account for each supplier of merchandise will appear in the accounts payable subsidiary ledger.

True

False