PART $1$: TRUE$/$FALSE QUESTIONS $($Questions $1-8)(24\mathrm{.}24$ points$)$ Each of the $8$ true$/$false questions in Part I involves accessing whether the statement given is true or false. Select answer $"$A$"$ if the statement is true and select answer $"$B$"$ if the statement is false. Please mark the scantron form carefully to facilitate grading. $1)$ Compound interest includes interest earned on interest. $$TRUE $$FALSE $2)$ An annuity is a series of equal periodic payments or cash receipts. ~ A$)$ TRUE B$)$ FALSE $3)$ Other things being equal, the present value of an annuity due will be less than the present value of an ordinary annuity. $$TRUE $$FALSE $4)$ Recognizing sales returns only when merchandise is returned could result in an overstatement of income in the period of the related sale. $$TRUE $$FALSE $5)$ The allowance method for estimating bad debts requires an adjusting entry at the end of the period to reduce receivables to their appropriate carrying value. $$TRUE $$FALSE $6)$ The choice of cost flow assumption $($FIFO$,$ LIFO, or average$)$ does not depend on the actual physical flow of the product. $$TRUE $$FALSE $7)$ During periods of falling prices, LIFO ending inventory will be less than FIFO ending inventory. $$TRUE $$FALSE $2$