True or false.

1. Service cost is the expense caused by the increase in the accumulated benefit obligation because of employees service during the current year.
2. The difference between the PBO and the ABO is that the PBO takes into account future salary increases, while the ABO is based on current salaries.
3. Prior service cost is the increase in the PBO because of pension plan amendments.
4. The PBO is a more appropriate measure for pension obligation in the case of firm bankruptcy than the VBO.
5. Other Comprehensive Income related to pension prior service cost is reported as part of net income.
6. Executory costs should be excluded by the lessee in computing the present value of the minimum lease payments.
7. A lessee records interest expense in both a finance lease and an operating lease.
8. No lease liabilities should be reported on the balance sheet if the lease is classified as an operating lease.
9. The lessor should ignore the guaranteed residual value in its calculation of lease receivable.
10. If residual value is unguaranteed, the lessee ignores the residual value in the computation of lease liability.
11. Companies report the cash flows from purchases and sales of trading securities as cash flows from operating activities.
12. A company should add back bond premium amortization to net income to arrive at net cash flow from operating activities.
13. Dividends received from other companies stocks should be reported as cash flow from investing activities.
14. Interest paid to creditors should be reported as cash flows from financing activities.
15. Cash paid to the lessor in the case of operating lease should be reported as cash flows from financing activities.