II. True or False (16 points) 1. Net working capital equals current assets less current liabilities. 2.A dollar received today is less valuable than a dollar received next month. 3.A bond with a face value of $1,000 and a market value of $1,200 is called a discount bond. 4.A convertible bond can be exchanged for shares of company stock. 5.The owner of preferred stock is entitled to a distribution of income prior to the common shareholders. 6.An annuity stream where the payments occur forever is called an annuity. 7. The cash flow to creditors increases when interest is paid on outstanding debt. 8.Depreciation is a noncash expense that decreases the selling, general, and administrative expenses