PARTI $(20$ Points $-10$ @ $2$ Points Each$)$Indicate whether the following statements are "True" or "False" by circling your answers on the answer sheet:TRUEFALSE$1)$ TThe present value of future cash flows increases when the appropriate rate of interest increases$\mathrm{.}2)$ TIf a company repurchases $($in the market$)$ its own issue of bonds payable prior to the issue's maturity date and pays more than its net book value, the effective yield $($interest rate$)$ in the market has decreased since the date of issue$\mathrm{.}3)$FBoth finance leases and operating leases are accounted for as assets and liabilities on the balance sheet of the lessee$\mathrm{.}4)$T$\text{'}$Gains$\text{'}$ on the sale of treasury stock should be credited directly to retained earnings as an extraordinary item of income$\mathrm{.}5)$ TIn a period of rising prices, the LIFO inventory costing method always leads to a lower reported profit than the FIFO method $($applied to the same inventory$)$ even if inventory quantities decrease i$.$e$.,$ a LIFO liquidation occurs$)\mathrm{.}6)$ T F The issue of capital stock during the year has no direct effect on a firm'sreported income for the year$\mathrm{.}7$ T F All subsidiaries $($except for those where the parent company does notexert effective control, e$.$g$.,$ a subsidiary in bankruptcy$)$ are included in consolidated financial statements prepared by the parent company$\mathrm{.}8)$ T F A publicly held company coming under the jurisdiction of the Securitiesand Exchange Commission generally has the option of using either the accrual or cash basis of accounting in preparing $($audited$)$ financial statements for its shareholders$\mathrm{.}9)$T F A deferred tax liability reported on a firm's balance sheet represents theamount of money that a company owes for income taxes that are currently payable$\mathrm{.}10)$T F The writing off of an uncollectible account reduces the balance of net accounts receivable reported on the balance sheet.