1. 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)

2. Regarding Provincial Sales Tax (PST),

a) the purchaser includes any PST paid in the cost of the goods or services.

b) all PST paid is recorded in a PST Expense account.

c) all PST paid is recorded in a PST Recoverable account.

d) for statement of financial position presentation, a PST registrant nets any PST paid against any PST collected from customers.

3. How should a long-term bond initially be valued?

a) at the present value of the interest to be paid

b) at the future value of the future cash flows

c) at the present value of the future cash flows

d) at the maturity value of the bond