QUESTION 5

1. Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information.
2. True
3. False

QUESTION 6

1. The primary purpose of a statement of cash flows is to report the cash effects of operations during a period.
2. True
3. False

QUESTION 7

1. Compound interest, rather than simple interest, must be used to properly evaluate long- term investment proposals
2. True
3. False

QUESTION 8

1. The present value of an annuity due table is used when payments are made at the end of each period.
2. True
3. False

QUESTION 9

1. Savings accounts are usually classified as cash on the balance sheet.
2. True
3. False

Question 10

1. For receivables sold with recourse, the seller guarantees payment to the purchaser if the debtor fails to pay.
2. True
3. False