Part I: If the statement is correct write "True" or otherwise "False" (0.5 point each)
1. Inventories are asset items held not for sale in the ordinary course of business
2. Ending inventory is the cost of merchandise on hand at the end of the accounting period
3. A balance sheet is a financial statement that lists all assets, liabilities and capitals of an organization on a specific date.
4. FIFO method is of assigning cost assumes that the most recent purchases are sold first
5. Retail Method of Inventory costing is made based on the relationship between the cost and the retail price of merchandises available for sale. 6. Gross profit refers to the amount of income that an organization earns from selling of items after deducting their cost.
7. Tangible assets are assets without a physical feature that can be charged in the operations of businesses for long period of time.
8. The term Depreciation is used to describe the gradual conversion of the cost of the asset into an expense.
9. A betterment is an improvement that can be add to the physical layout of the asset.
10. The allocation of intangible assets to the periods they benefits is called amortization.
