True/False Indicate whether the statement is true or false. 1. The greater the number of compounding periods within a year, then the greater the future value of a lump sum investment at Time 0. 2. The present value of a future sum increases as either the discount rate or the number of periods per year increases, other things held constant. 3. Assets other than cash are expected to produce cash over time, but the amount of cash they eventually produce could be higher or lower than the amounts at which the assets are carried on the books. 4. On the balance sheet, total assets must always equal the sum of total liabilities plus equity. 5. A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in a typical partnership 6. Because the U.S. tax system is a progressive tax system, a taxpayer's marginal and average tax rates are the same. 7. Disregarding risk, if money has time value, it is impossible for the future value of a given sum to exceed its present value. In order to maximize its shareholders' value, a firm's management must attempt to maximize the stock price on a specific target date. 8. If we were describing the income statement and the balance sheet, it would be correct to say that the income statement is more like a slideshow while the balance sheet is more like a snapshot. 9. 10. The statement of cash flows has three main sections, one each for operating, investing, and financing activities; plus one that shows a summary of the cash and cash equivalents at the end of the year