4 54% Wed 5:46 PM Yunling Li Q, E Preview File Edit View Go Tools Window Help MG 6511 JPG T/F 1. Revenue from a foreign subsidiary will be smaller in U.S. dollars when the dollar strengthens relative to the foreign currency 2. Employee severance costs, as part of board-approved restructuring plans, are reported in the income statement even if the actual payment for these costs occurs in subsequent periods 3. Companies that engage in long-term sales contracts such as construction projects often use the percentage of completion method to recognize revenue. This means that revenue is recognized in proportion to the project's completion. A. Accounts payable are a short-term source of non-interest-bearing financing 5. Secured debtholders have a preferred position over other creditors but not over preferred stock holders. 6. A bond selling for an amount above face value is said to be selling at a discount. 7. Kimberly-Clark recently repurchased 12.4 million shares of common stock at a price of $97 per share. One plausible reason for this is that the company feels that its stock is overvalued at the current market price. 8. In 2013, Macy's paid $359 million of cash dividends. These dividends reduced assets and reduced retained earnings. 9. When a passive is sold, gain (loss) is typically reported in "other" income investment the 10. If ble securities are classified in the current asset section, as "available for sale securities, then the assumption is that the shares will be sold during the current year