Financial Accounting Ch. 4,5,6 True or False
True
Retailers and wholesalers are both considered merchandisers
True
After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances
True
Freight terms of FOB destination means that the seller pays the freight cost
True
Closing entries are journalized after adjusting entries have been journalized
False
Closing revenue and expense accounts to the income summary account is an optional book keeping procedure
True
Goods out on consignment should be included in the inventory of the consignor
True
An error that overstates the ending inventory will also cause net income for the period to be overstated
True
Under a perpetual inventory system, the cost of goods sold is determined each time a sale occurs
True
Goods that have been purchased FOB destination but are in transit should be excluded from a physical count of goods
False
The sales returns and allowances account and the sales discount account are both classified as expense accounts
True
Under the lower-cost or market basis, market is defined as current replacement cost
True
In a period of falling prices, the LIFO method results in a lower cost of goods sold than the FIFO method
True
The first-in, First-out (FIFO) inventory method results in an ending inventory valued at the most recent cost