1. Trading securities are at reported fair value and included in net income. True or False?

2. A loss carryback to prior years income tax, results in a reduction to the loss in the current year. True or False?

3. Payment of dividends is reported in the investing section of the statement of cash flows. True or False?

4. A change in accounting estimate should always be accounted for in current and future periods. True or False?

5. Interest revenue on municipal bonds results in a temporary tax difference True or False?

6. Service cost is a component of net periodic postretirement benefit cost. True or False?

7. Distribution of dividends increases retained earnings. True or False?

8. A change in inventory valuation method is a change in accounting estimate. True or False?