ACC 304 All Assignments ACC 304 All Assignments | Page 67

TRUE FALSE—Conceptual
1. A manufacturing concern would report the cost of units only
partially processed as inventory in the balance sheet.
2. Both merchandising and manufacturing companies normally
have multiple inventory accounts.
3. When using a perpetual inventory system, freight charges on
goods purchased are debited to Freight-In.
4. If a supplier ships goods f.o.b. destination, title passes to the
buyer when the supplier delivers the goods to the common carrier.
5. If ending inventory is understated, then net income is
understated.