Question 5: True/ False

a)A company should recognize gain contingencies in the income statement, if a high probability exists for realizing them

b)Simple interest is computed on principal and on any interest earned that has not been withdrawn.

c) If the market interest rate is greater than the coupon rate, bonds will be sold at a premium.

d) Warranty expense should be recognized not in the year that products are sold, but in the year when companies pay for service claims.

e) Accumulated other comprehensive income is part of retained earnings reported on the balance sheet.