True Or False
_____The Fair Value Adjustment account has a normal creditbalance.
_____Companies report trading securities at fair value, withunrealized holding gains and losses reported in net income.
_____Equity security holdings between20 and 50 percent indicates that the investor has a controllinginterest over the investee.
_____A debt security acquired as aninvestment cannot be classified as a trading security.
_____One requirement related to fairvalue disclosure is that both the cost and the fair value of allinstruments be reported in the notes to the financialstatements.
_____Pretax financial income is theamount used to compute income taxes payable.
_____A deferred tax liabilityrepresents the increase in taxes payable in future years as aresult of taxable temporary differences existing at the end of thecurrent year.
_____A company should add a decreasein a deferred tax liability to income taxes payable in computingincome tax expense.
_____Examples of taxable temporarydifferences are subscriptions received in advance and advancerental receipts.
_____Permanent differences do not giverise to future taxable or deductible amount.
