PALL 2018 Instructor: Kevin M. Karr True/False (1 point each) 1. A merchandiser's inventory consists of raw materials, work in process, 2. The purpose of the statement of cash flows is to provide information and finished goods. about a company's cash receipts and cash payments during an accounting period. 3. The Allowance for Bad Debts is a contra-asset account. 4. Freight charges associated with the purchase of inventory normally are not included in inventory cost. 5. The matching of revenue with cost of goods sold is best achieved with the FIFO inventory method. 6. The portion of goods available for sale that is not assigned to ending inventory is assigned to cost of goods sold