Answer true or false to the following statements.

1. Unearned Revenue is shown on the income statement.

2. A trial balance can be placed directly on a worksheet.

3. Ending inventory of one period is the beginning inventory of the following period.

4. Inventory shrinkage reduces cost of goods sold.

5. Unearned Revenue is a liability.

6. Sales Discounts is a temporary account.

7. Perpetual inventory keeps a continuous record of inventory.

8. Net income always means cash is received.

9. A merchandise company does not need a cost of goods sold section on the income statement.

10. A perpetual system is often used by companies with low volume and high unit prices.

11. Merchandise inventory that is sold is assumed to be a liability.

12. Inventory is an asset.

13. All companies give sale discounts.

14. The ending inventory must be confirmed by a physical count of inventory.

15. Inventory is always counted 12 times per year.