Question

Show all work please.

DIPIUL 2 True/False 7 points each. Circle the correct answer. 4. A single liability cannot be divided between current and noncurrent liabilities. True False A liability may exist even if there is uncertainty about whom to pay, when to pay, how much to pay. True False 6. Multiple Choice 5 points each. Circle the correct answer. 57. A. B. A contingent liability is Always of a specific amount A potential obligation that depends on a future event arising from a past transaction or event An obligation not requiring future payment An obligation arising from the purchase of goods or services on credit An obligation arising from a future event vè w 72. A. B. C. D. A short-term note payable Is a written promise to pay a specified amount on a definite future date within on year or the company's operating cycle, whichever is longer. Is a contingent liability Is an estimated liability Is not a liability until the due date Cannot be used to extend the payment period for an account payable. E.

Answer 1

A single liability can be divided between current and non-current liabilities. Hence, the given statement is False. 6. A liability may exist even if there is uncertainty about whom to pay, when to pay and how much to pay. An example of the same is a contingent liability. Hence, given statement is True. 57. A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event. A contingent liability may be uncertain about how much, when and whom to pay. Hence, option B, is the correct option. 72. A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer. Hence, option A. is the correct option.