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The balance sheet and income statement are directly connected through owner’s equity.

Revenues increase owner’s equity, while expenses decrease owner’s equity.

The general journal records transactions in alphabetical order by account name.

Ethical behavior in accounting is important because users rely on financial information to make economic decisions.

Accumulated depreciation is an asset account.

Errors of omission can still exist even if a trial balance balances.

A trial balance is prepared before transactions are recorded in the journal.

The accounting cycle begins with analyzing transactions.

Financial statements are prepared after adjusting entries are recorded.

Net income increases owner’s equity, while a net loss decreases owner’s equity.