1. Among Oslo Corp.'s short-term obligations, on its most recent statement of financial position date, are notes payable totaling $250,000 with the Provincial Bank. These are 90-day notes, renewable for another 90-day period. These notes should be classified on Oslo's statement of financial position as

a) current liabilities.

b) deferred charges.

c) long-term liabilities.

d) shareholders' equity.

2. Regarding zero-interest-bearing notes,

a) they do not have an interest component.

b) the debtor receives the future value of the note and pays back the present value.

c) any interest is never recognized until the note is repaid.

d) the debtor receives the present value of the note and pays back the future value.

3. Which of the following should NOT be included in the current liabilities section of the statement of financial position?

a) trade accounts payable

b) current portion of long-term debt to be retired by non-current assets

c) short-term zero-interest-bearing notes payable

d) a liability due on demand (callable debt)