Part A: True / False

When buying goods, FOB Destination means ownership has passed to the buyer as soon as it is shipped (leaves the seller's location). T/F

Net sales is sales revenue less (minus) both sales returns and allowances and sales discounts. T/F

Inventory is reported as a current asset on the statement of financial position. T/F

The first-in, first-out (FIFO) inventory method results in an ending inventory valued at the most recent cost. T/F

Internal control features adopted by a company must be evaluated in terms of cost-benefit. T/F

All reconciling items listed on the Bank side of the reconciliation, require the business owner to make adjusting journal entries to their Cash account. T/F

Cash (Net) realizable value is determined by subtracting Allowance for Doubtful

Accounts from Net Sales. T/F

Both the full amount of receivables and the allowance for doubtful accounts should be reported in the financial statements. T/F

All costs incurred to purchase inventory and to get that inventory to our business and ready to sell, become part of the cost of inventory. T/F

Allowance for Doubtful Accounts is a contra asset account. T/F

Only transactions that can be measured in dollars (have monetary value) are recorded in the financial information system. T/F

The basic accounting equation states that Assets = Liabilities T/F

Share capital is the total amount paid in by shareholders for shares purchased. T/F

The normal balance of all accounts is a debit. T/F

Cash received for services in advance (before they are performed), is recorded a liability. T/F

The total amount of debits on the adjusted trial balance will equal the total amo of assets on the statement of financial position. T/F

The Dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period. T/F

After closing entries have been journalized and posted, all temporary account the ledger should have zero balances. T/F