100 points I. TRUE (T) OR FALSE (F) (30 points) 1. FASB standards directly affect financial statements, notes to the financial statements, and management's discussion and analysis. 2 Accounting policies are the specific accounting principles and methods a company uses and considers most appropriate to present fairly its financial statements 3. In order to make adequate disclosure of related party transactions, companies should report the legal form, rather than the economic substance of these transactions 4. If the loss on an account receivable results from a customer's bankruptcy after the balance sheet date, the company only discloses this information in the notes to the financial statements 5. A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year. 6. A deferred tax asset represents the increase in taxes refundable in future years as a result of deductible temporary differences existing at the end of the current year. 7. Companies should classify the balances in the deferred tax accounts on the balance sheet as noncurrent assets and noncurrent liabilities 8. A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year. 9. Qualified pension plans permit deductibility of the employer's contributions to the pension fund 10. An employer does not have to report a liability on its balance sheet in a defined-benefit plan. 11. A pension plan is contributory when the employer makes payments to a funding agency. 12. Companies compute the vested benefit obligation using only vested benefits, at current salary levels ervice cost is the expense caused by the increase in the accumulated benefit obligation because of employees' service during the current year. 14. The Accumulated Other Comprehensive Income (G/L) account is amortized only if it exceeds 10 percent of the larger of the beginning balances of the projected benefit obligation or the market-related plan assets value! 15. If the Accumulated Other Comprehensive Income (G/L) account is less than the corridor, the net gains and losses are subject to amortization. VEKED In nainte