Answer the following statements true (T) or false (F)
1. According to the concept of materiality, all supplies must be treated as an asset and be adjusted for at the end of the accounting period.
2. In order to ensure accuracy of account totals, an adjusted trial balance is prepared prior to preparation of financial statements.
3. The adjusted trial balance is the basis for the preparation of the Balance Sheet only.
4. The balance of Retained Earnings on the adjusted trial balance does not represent the final Retained Earnings balance on the Balance Sheet.
5. Net income or net loss can be determined by the adjusted trial balance figures.
1. FALSE
2. FALSE
3. FALSE
4. TRUE
5. TRUE
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