Question: Choose TRUE if the statement is correct and FALSE if it is incorrect and give a brief explanation as to why it is false. 1.

Choose TRUE if the statement is correct and FALSE if it is incorrect and give a brief explanation as to why it is false. 1. Goods in transit are automatically included in inventory. Explanation: 2. If the seller is responsible for paying freight charges, then ownership of inventory passes when goods arrive at their destination. Explanation: 3. Merchandise Inventory is priced at selling price. Explanation: 4. If the amount of expenses incurred during the period is smaller than the Gross Profit, the result is Loss. Explanation 5. If the shipping term is F.O.B. Shipping Point and the seller (shipper) pays in advance the freight in behalf of the buyer the freight paid is freight collect

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