1. Trading securities are at reported on the balance sheet at amortized cost.

True or False?

Answer ______

2. Warranty expense estimates are higher than warranty returns in a given year. This will result in a deferred tax asset.

True or False?

Answer ______

3. An increase in bonds payable is reported in the financing section of the indirect method statement of cash flows.

True or False?

Answer ______

4. A change in accounting estimate should be accounted for in current and future periods.

True or False?

Answer ______

5. Interest revenue on municipal bonds results in a permanent tax difference.

True or False?

Answer ______

6. A component of net periodic post retirement benefit cost is service cost.

True or False?

Answer ______

7. Retained Earnings is increased by the distribution of dividends.

True or False?

Answer ______

8. A change in the useful life of a fixed asset is a change in accounting estimate.

True or False?

Answer ______