True or false this is a review so pleas explain all answers.

_____ Dividends in arrears on cumulative preferred stock need not be recorded as a liability.

____All long-term debt maturing within the next year must be classified as a current liability on the balance sheet.

_____ A company is a plaintiff in a lawsuit.It should accrue the estimated gain from the judgment if information indicates that it is virtually certain and the amount can be reasonably estimated.

____The revenue from a service-type warranty that covers several years should all be recognized in the period the warranty is sold.

_____Under an assurance-type warranty, companies charge warranty costs only to the period in which they comply with the warranty.

_____Prepaid insurance should be included in the numerator when computing the acid-test (quick) ratio.

_____Current liabilities are usually recorded and reported in financial statements at their full maturity value.

_____Debt securities held as an investment include corporate bonds and convertible debt, but not U.S. government securities.

_____Securities classified as trading securities are securities bought and held primarily for sale in the near-term to generate income on short-term price differences.

_____Unrealized holding gains and losses are recognized in net income for available-for-sale debt securities.

_____The Fair Value Adjustment account has a normal credit balance.

_____Companies report trading securities at fair value, with unrealized holding gains and losses reported in net income.

_____Equity security holdings between 20 and 50 percent indicates that the investor has a controlling interest over the investee.

_____A debt security acquired as an investment cannot be classified as a trading security.

_____One requirement related to fair value disclosure is that both the cost and the fair value of all instruments be reported in the notes to the financial statements.

_____Pretax financial income is the amount used to compute income taxes payable.

_____A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year.

_____A company should add a decrease in a deferred tax liability to income taxes payable in computing income tax expense.

_____Examples of taxable temporary differences are subscriptions received in advance and advance rental receipts.

_____Permanent differences do not give rise to future taxable or deductible amounts.