True/False Indicate whether the statement is true or false. 1. Safeguarding inventory and proper reporting of the inventory in the books are the reasons for controlling th inventory 2. An accounting system is the methods and procedures used to collect, classify, summarize, and report the businesses financial information Once an accounting system has been implemented, feedback will be used to continuously analyze and improve the system. 3. 4. Service businesses provide services for income, while a merchandising business sells merchandise. S. In a perpetual int sytem,the Merchandise Inventory account is only used to reflet the begining inventory. During inflationary periods, the use of the FIFO method of costing inventory will result in a greater amoun of net income than would result from the use of the LIFO cost method. 6. 7. Internal control is enhanced by separating the control of a transaction from the record-keeping function 8. Money orders are considered cash