true or false questions

nability 12. Companies report trading securities at fair value, with unrealized holding gains and losses reported as a component of net income. 13. Equity security holdings between 20 and 50 percent indicates that the investor has a controlling interest over the investee. Accounts such as prepaid insurance and supplies should be included in the numerator when computing the acid-test (quick) ratio. One requirement related to fair value disclosure is that both the cost and the fair value of all instruments be reported in the notes to the financial statements. 16. Pretax financial income is the amount used to compute income taxes payable. 17. A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year. 18. _ A company should add a decrease in a deferred tax liability to income taxes payable in computing income tax expense. nability 12. Companies report trading securities at fair value, with unrealized holding gains and losses reported as a component of net income. 13. Equity security holdings between 20 and 50 percent indicates that the investor has a controlling interest over the investee. Accounts such as prepaid insurance and supplies should be included in the numerator when computing the acid-test (quick) ratio. One requirement related to fair value disclosure is that both the cost and the fair value of all instruments be reported in the notes to the financial statements. 16. Pretax financial income is the amount used to compute income taxes payable. 17. A deferred tax liability represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year. 18. _ A company should add a decrease in a deferred tax liability to income taxes payable in computing income tax expense