12. Which of the following is a current asset? a. Cash surrender value of a life insurance policy of which the company is the beneficiary. b. Trade accounts receivables normally collectible in 10 months. c. Cash in a sinking fund for the retirement of bonds payable. d. Investment in equity securities for the purpose of controlling the issuing company. 13. Which of the following liabilities is properly classified as a current liability? a. currently maturing bonds payable that will be paid out of a sinking fund accumulated for long-term purpose b. short-term notes payable being refinanced with long term notes c. obligations for goods and services that will be paid within the normal opernting cycle that is longer than 1 year d. obligations that will be paid outside the operating cycle that is longer than 1 year 14. Fair value measurement of an asset or liability is based on a fair value hierarchy that establishes priorities among inputs to valuation techniques. According to the hierarchy, which of the following statements is true? a. Quoted prices for items similar to the asset or liability are on Level 3 . b. All observable inputs are on Level 1 . c. Unadjusted quoted prices for an identical asset or liability are on Level 1. d. Unobservable inputs are on Level 2