Which of the following is/are not true regarding a merchandising firm?
a. Inventory appears on the merchandiser's balance sheet initially as an asset.
b. Inventory for a merchandiser is measured at acquisition cost.
c. When a sale takes place, the merchandising firm recognizes the cost of the inventory as an expense (cost of goods sold) on the income statement.
d. When a sale takes place, the merchandising firm recognizes the inventory reduction on the statement of cash flows.
e. All of the above are false regarding a merchandising firm.
D
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Indicate whether the statement is true or false