1. Which of the following statements regarding liabilities is true? a. Liabilities are always payable in cash. b. Liabilities are all reported as current in the balance sheet. c. Liabilities result from future transactions. d. Liabilities represent probable future sacrifices of benefits. 2. Which of the following statements regarding liabilities is true? a. Liabilities are always payable in cash. b. Liabilities are all reported as current in the balance sheet. c. Liabilities result from future transactions. d. Liabilities represent probable future sacrifices of benefits. 3. If Executive Airways borrows $10 million on April 1, 20X1, for one year at 6% interest, how much interest expense does it record for the year ended December 31, 20X1? a. $300,000 b. $450,000 c. $150,000 d. $600,000 4. Travel Planners, Inc, borrowed $5,000 from First State Bank and signed a promissory note. What entry should Travel Planners record? a. Debit Cash, $5,000; Credit Notes Receivable, $5,000. b. Debit Notes Receivable, $5,000; Credit Cash, $5,000. c. Debit Cash, $5,000; Credit Notes Payable, $5,000. d. Debit Notes Payable, $5,000; Credit Cash, $5,000. 5. Which of the following is paid by both the employee and the employer? a. FICA taxes. b. Federal unemployment taxes. c. State unemployment taxes. d. Personal income taxes