ck each) the blank to indicate if the following statements are TRUE or False I 2 3 T 4 FOB Destination means inventory becomes the legal property of the buye (ownership has passed to the buyer) as soon as it is shipped (leaves the location) and that the buyer pays the freight costs 5 Net sales is sales revenue less both sales retums and allowances and discounts 6 Merchandise inventories are reported as current assets on the statem financial position The first-in, first-out (FIFO) inventory method results in an ending at the most recent cost The extent of internal control features adopted by a compa in terms of cost-beneft All reconciling items in determining the adjusted cash Bank side of a bank reconciliation), require the depo entries to the Cash account 7 Cash (net) realizable value is determined by su Accounts from Net Sales Allow 8 Both the full amount of receivables and th should be reported in the financial state When purchasing land, the costs t 9 be charged to a Land Improvem 10 e for d draining f int Accumulated depreciation is reported on the statemen deduction from plant assets Leam