True or False

1._____ Dividends in arrears on cumulative preferred stock need not be recorded as a liability.

2._____All long-term debt maturing within the next year must be classified as a current liability on the balance sheet.

3._____ A company is a plaintiff in a lawsuit. It should accrue the estimated gain from the judgment if information indicates that it is virtually certain and the amount can be reasonably estimated.

4._____The revenue from a service-type warranty that covers several years should all be recognized in the period the warranty is sold.

5._____Under an assurance-type warranty, companies charge warranty costs only to the period in which they comply with the warranty.

6._____Prepaid insurance should be included in the numerator when computing the acid-test (quick) ratio.

7._____Current liabilities are usually recorded and reported in financial statements at their full maturity value.

8._____Debt securities held as an investment include corporate bonds and convertible debt, but not U.S. government securities.

9._____Securities classified as trading securities are securities bought and held primarily for sale in the near-term to generate income on short-term price differences.

10._____Unrealized holding gains and losses are recognized in net income for available-for-sale debt securities.