1) Which of the following statements concerning liabilities is incorrect? a) A liability occurs as a result of present obligations. b) A liability arises from a past event. c) Liabilities include prepaid expenses. d) A liability is an obligation to make future payments of assets or services. 2) An operating line of credit has the following features except; it does not have a pre-set limit. b) it is pre-authorized by the bank. c) it helps companies manage temporary cash shortfalls. d) it enables timely payments of current liabilities. 3) The journal entry to record a cash sale of $7,000 plus 13% HST is; 38606 debit to cash $7,910, credit to sales $7,910 b) debit to cash $7,000, credit to sales $7,000 debit to cash $7,000, credit to sales $7,910, credit to HST payable $910 debit to cash $7,910, credit to sales $7,000, credit to HST payable $910 4) Which of the following is an estimated liability? 7 8306 notes payable. salaries payable. current portion of long-term debt. d) product warranties. 5) The key components of the conceptual framework include all of the following except; a) specific accounting standards for inventory b) the objective of financial reporting the elements of financial statements d) recognition criteria