Investments in equity securities can be distinguished as either short-term or long- term investments. Investments in equity securities that are short-term can be further distinguished as either trading or available-for-sale securities. (True/False).

The primary point of statement of cash flows is to determine the amount that cash changed during the period. (True/False)

It is impossible for a company to have future taxable amounts, future deductible amounts and a permanent difference all occurring in the same period. (True/False)

The computation to determine income tax payable is not impacted by temporary differences or permanent differences. (True/False)

A company has a deferred tax liability due to different depreciation methods used in determining financial income and taxable income. In all years, the income tax expense will be greater than the income tax payable. (True/False)

Assuming a company has a temporary difference, the deferred tax will be disclosed on both the balance sheet and income statement. (True/False)