T F Events are economic occurrences that require accounting entries. T F Under entity theory, creditors are considered equity holders. T F Preferred stockholders are residual equity holders. T F Transactions are economic or financial events that are recorded in the firm's accounts. T F Owners' equity is defined as the stockholders' residual interest in the net assets of the firm. Which one of the following statements is true? FOB destination means the buyer has legal title to the goods while they are in transit. FOB shipping point means the seller has legal title to the goods while they are in transit. FOB destination means the seller has legal title to the goods until they reach the buyer's place of business. FOB shipping point means the buyer acquires legal title to the goods when they reach the buyer's place of business. Which one of the following statements is true? Until goods are sold by the consignee, the consignor includes the goods in his/her inventory at cost less handling and shipping costs incurred in the delivery to the consignee. When goods are sold on an installment plan, the seller retains title and continues to include hem on his/her balance sheet until full payment has been received. Title to goods may not pass before shipment occurs. In accounting for inventory, economic substance should take precedence over legal form. Which one of the following is not an advantage of LIFO? In periods of rising prices, less income taxes are paid. In periods of rising prices, less holding gains are reported in net income. Record keeping and financial statement preparation are easier. Conservative income statements and balance sheet disclosures result from rising prices