1. The results of discontinued operations are shown on a per-share basis on the income statement.
2. True
3. False

Question 2

1. When calculating earnings per share, subtract dividends paid to common stockholders from net income.
2. True
3. False
4. Question 3
5. Restructuring charges are included in operating income.

1. True
2. False

1. Question 4
2. Short-term investments are classified in the current assets section of the balance sheet.
3. True
4. False
5. Question 5
6. Additional paid-in capital in excess of par is reported in the Investments section of the balance sheet.
7. True
8. False
9. Question 6

1. An decrease in inventory should be added to net income in the operating section of the statement of cash flows.

1. True
2. False

1. Question 7
2. Accumulated depreciation reduces current assets.
3. True
4. False

1. Question 8

The journal entry to write off an uncollectible account decreases net income.

1. True
2. False

1. Question 9
2. The entry to record bad debts expense reduces net income.
3. True
4. False

1. Question 10

1. When a discount on a note receivable is reduced, interest revenue is recorded.
2. True
3. False