True or False

26) Current liabilities are amounts due to be paid within the next 12 months. a) TRUE b) FALSE 27) Senior management and accountants are responsible to ensure controls are in place to accurate track the value of inventory from the point of purchase to the point of sale. a) TRUE b) FALSE 28) Perpetual inventory system only updates the inventory and COGS values after physically counting the items on hand. a) TRUE b) FALSE 29) Sales returns occur when undesirable products are returned to the buyer. a) TRUE b) FALSE 30) All revenue accounts are closed to the income summary account. a) TRUE b) FALSE 31) The income summary account is closed to the owner's capital account. a) TRUE b) FALSE 32) An overstatement of ending inventory results in an understatement of COGS and an understatement of net income. a) TRUE b) FALSE 33) A lower inventory days on hand means that inventory is less likely to become obsolete because it is sold in fewer days. a) TRUE b) FALSE