16. Prepaid Expenses TRUE/FALSE - A-TRUE: B-FALSE 17. The detail of individual revenue and expense accounts is reported on the statement of owner's equity. 18. The LIFO inventory method assumes that cost for the first units purchased are the first to be sold 19. The closing entries make all temporary accounts equal zero. 20. An understatement of the ending inventory balance will understate cost of goods sold and overstate net income. 21. The cost of an inventory item includes its invoice cost minus any discount plus any costs necessary to put it in a place and condition for sale. 22. The seller is responsible for paying shipping charges and bears the risk of damage or loss in transit if goods are shipped FOB destination