True or False

1. Research & Development is an Operating Expense.

2. Cost of revenues include selling, general & administrative expenses.

3. Gross profit is calculated by dividing gross margin by revenues.

4. Interest income is earned on a companys cash and marketable securities.

5. Non-operating income (expenses) are interest and other income (or expenses) unrelated to the provision of goods or services.

6. Research and development are expenses incurred in enhancing and innovating products.

7. Cost of revenues is calculated by subtracting operating expenses from revenues.

8. Operating expenses are directly related to the provision of goods and services.

9. Earnings per share is not impacted by share issues or repurchases.

10. Revenues are the value generated by providing goods and services to customers.