4. If a supplier ships goods f. o. b. destination, title passes to the buyer when the supplier delivers the goods to the common carrier.
5. If ending inventory is understated, then net income is understated.
6. If both purchases and ending inventory are overstated by the same amount, net income is not affected.
7. Freight charges on goods purchased are considered a period cost and therefore are not part of the cost of the inventory.
8. Purchase Discounts Lost is a financial expense and is reported in the ― other expenses and losses ‖ section of the income statement.
9. The cost flow assumption adopted must be consistent with the physical movement of the goods.