TRUE/FALSE

1. Land used in the companys operations is reported as a long-term investment.

2. Short-term investments are also called temporary investments or marketable securities.

3. External users of accounting information manage and operate the company.

4. Long-term investments are usually held as an investment of cash for use in current operations.

5. Interest on bonds is tax deductible.

6. One of the similarities of bond and equity financing is that both dividends and equity distribution payments are tax deductible.

7. The legal contract between the issuing corporation and the bondholders is called the bond indenture.

8. Corporations avoid many of the state regulations and controls that proprietorships and partnerships are subject to.

9. A corporation is a legal entity separate from its owners.

10. A partnership has a limited life.