True or False

1. Transportation-in is considered a cost of purchasing inventory
2. In many retail businesses, inventory is the largest current asset.
3. As inventory is sold in many retail businesses, the largest expense is created.
4. The cost of merchandise is inventory is limited to the purchase price less any purchase discounts.
5. A business using the perpetual inventory system, with its detailed subsidiary records, does not need to take a physical inventory.
6. One of the two internal control procedures over inventory is to properly report inventory on the financial statements.
7. A detective internal control is designed to find an error or misstatement after it has occurred.
8. A perpetual inventory system is an effective means of control over inventory.
9. A subsidiary inventory ledger can be an aid in maintaining inventory levels at their proper levels.
10. Title to merchandise shipped FOB shipping point passes to the buyer upon delivery of the merchandise to the buyers place of business.
11. Purchased goods in transit should be included in the ending inventory if the goods were shipped FOB shipping point.
12. Purchased goods in transit, shipped FOB destination, should be excluded from ending inventory.
13. A consignor who has goods out on consignment with an agent should include the goods in ending inventory even though they are not in the possession of the consignor.