1) Stock dividends and liquidated dividends are similar in that both do not change total stockholders' equity. (True/False) 2) Federal unemployment insurance paid should be included in an employer's payroll tax expense. (True/False) 3) A pending court case with a probable unfavorable outcome is an example of a contingent liability which should be disclosed on the balance sheet but does not require footnote disclosure. (True False) 4) A note payable which is due in more than 12 months is a long-term liability. (True False) 5) To record any liability, the payment must be probable and reasonably estimated. (True False) 6) Investments in equity securities are adjusted to fair value at the end of the period. (True False)