1. A customer advance produces a liability that is satisfied when the product or service is provided. True False 2. Cash Flows from investing activities includes proceeds from issuing bonds. True False 3. Rent collected in advance is an asset in the balance sheet. True False 4. Diluted earnings per share includes outstanding common shares plus potential common shares in the numerator. True False 5. The income statement summarizes the operating activity of a firm at a point in time. True False 6. Disclosure notes to a company's financial statements are an integral part of a company's financial statements. True False 7. The SEC has the statutory authority to set accounting standards in the United States. True False 8. Comparative Financial Statements require presentation of the same number of years for the Statement of Cash Flows as for the Balance Sheets. 9. The Summary of Significant Accounting Policies includes information about the company's choices from among various alternative accounting methods. False 10. Reconciliation between net income and comprehensive income would include unrealized losses but not unrealized gains on available for sale securities