1. Current liabilities are normally recorded at the amount expected to be paid rather than at their present value. This practice can be supported by GAAP according to the concept of: (Points : 5) Matching Materiality Consistency Conservatism 2. If a company has a 51% chance that a customer will win a law suite against them for damages between $5-$15 million how is this recognized under both GAAP and IFRS (Points : 5) GAAP no liability would be recognized but under IFRS a liability would be recognized GAAP a liability would be recognized but under IFRS no liability would be recognized GAAP no liability would be recognized and under IFRS no liability would be recognized GAAP a liability would be recognized and under IFRS a liability would be recognized 3. A $500,000 bond issue sold for 98. Therefore, the bonds: (Points : 5) Sold at a discount which is recorded along with a debit to cash and a credit to bonds payable Sold at a premium which is recorded along with a debit to cash and a credit to bonds payable Sold at a discount which is recorded along with a debit to bonds payable and a credit to cash Sold at a premium which is recorded along with a debit to bonds payable and a credit to cash