25. All of the following are major components included in the FASB's definition of laiabilities except:

a) a liability is the obligation of a particular entity

b) a liability involves a probable future transfer of assets or services

c) a liability is one in which performance by both parties is still in the future

d) a liability is a result of past transactions or events

26. According to IAS for a refinaceable obligation to be classified as long term the refinancing must take place by?

a) the time that the obligation is satisfied with current assets

b) the balance sheet date, not the later date when the financial statements are finalized.

c) the date that the financial statements are finalized

d) no later than the end of the month following the close of the balance sheet year.

27. Current liabilities are define as?

a) liabilities that are part of a negotiated arrangement with a lender in which the terms are agreed to prior to the need for borrowing.

b) liabilities that have specific assets pledged as security.

c) liabilities whose liquidation will not require the use of current assets to satisfy the obligation within one year.

d) liabilities that are claims arising from operations that must be satisfied with current assets within one operating cycle

28. Coupon bonds are defined as

a) bonds that may be exchanged at the option of the bondholder for other securities of the corporation.

b) bonds that are issued by governmental units including state, county, and local entities.

c) bonds that are not recorded in the name of the owner, and title passes with the delivery of the bond.

d) bonds that are secured by stocks and bonds owned by the borrowing corporation.