1. Assume a company's beginning shareholders' equity is 200 million, its net income for the year is 20 million, its cash dividends for the year are 3 million, and there was no issuance or repurchase of common stock. The company's actual ending shareholders' equity is 227 million. What amount has bypassed the net income calculation by being classified as other comprehensive income? A) 0. B) 7 million. C) 10 million. Answer as TRUE or FALSE 2. Revenue is recognized in the period it is earned, which may or may not be in the same period as the related cash collection. 3. Depreciation is a special type of expense that helps improve profitability of the company 4. Under both IFRS and US GAAP, the income statement reports separately the effect of the disposal of a component operation as a "discontinued" operation. 5. If a company has a simple capital structure (i.e., one with no potentially dilutive securities), then its basic EPS is equal to its diluted EPS. If, however, a company has dilutive securities, its diluted EPS is lower than its basic EPS. 6. Assets not expected to be sold or used up within one year or one operating cycle of the business, whichever is greater, are classified as A) Illiquid Assets B) Real Assets C) Working Capital Assets D) Non-Current Assets