Test#2.2 Indicate whether the statement is true or false. 1. Income that cannot be associated definitely with operations, such as a gain from the sale of a fixed asset, is listed as Other Revenue on the multiple-step income statement. a. True b. False 2. The form of the balance sheet in which assets, liabilities, and stockholders' equity are presented in a downward sequence is called the report form. a. True b. False 3. Buyers and sellers do not normally record the list prices of merchandise and the trade discounts in accounts. a. True b. False 4. When a merchandising business is compared to a service business, the financial statement that is not affected by that change is the retained earnings statement. a. True b. False 5. The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date. a. True b. False 6. Inventory normally has a debit balance. a. True b. False 7. The seller may prepay the freight costs even though the terms are FOB shipping point. a. True b. False 8. The main reason that the bank statement cash balance and the company's cash balance do not initially balance is due to timing differences. a. True b. False Indicate the answer choice that best completes the statement or answers the question. . If title to merchandise purchases passes to the buyer when the goods are shipped from the seller, the terms are a. n/30 b. FOB shipping point c. FOB destination d. consigned Copyright Cengage Learning. Powered by Cognero. Page