. (T)rue or (F)alse 1) A prior period adjustments goes against Capital Stock. 2) Only disposition gain or loss is considered on discontinued operations. 3) Cummulative effect of a change in GAAP is presented net of tax. 4) Other income results from incidental transactions. 5) Meanwhile revenues and expenses result from recurrent transactions. 6) A discontinued product is considered discontinued operations. 7) A balance sheet presents the financial position. 8) An income statement present the result of operations. 9) The operating section of a cash flow converts net income to accrual basis. 10) Cummulative effect of a change in GAAP is charged against RE beginning balance. 11) Discontnued operations is presented on the Equity section of the balance sheet. 12) The effect of taxes is presented on any nonrecurring event. 13) A branch closed is considered a discontinued operation. 14) The result of operating a discontined operation is presented below NI. 15) An error correction is considered a Prior Period Adjustment. ANGE SUCET & INCOME STATEMENT.