5. Which of the following circumstances would require a contingent liability to be recorded under generally accepted accounting principles? a) The liability is probable and estimable. b) The liability is remote. c) The liability is possible. d) The liability is probable and not estimable. e) None of the above. 6. Fixed assets are, and are found on the a) Long-lived intangible assets; balance sheet. b) Long-lived tangible assets; income statement. c) Current tangible assets; balance sheet. d) Current intangible assets; income statement. e) None of the above 7. Intangible assets are: 8. a) Long-lived assets with no physical substance. b) Unnecessary for most major companies. c) Always current assets. d) Any assets that are acquired without using cash. e) None of the above Which of the following statements about capitalizing costs is correct? a) Capitalizing costs refers to the process of converting assets to expenses. b) All costs incurred by a company are capitalized. c) Capitalizing a cost means to record it as an asset. d) Capitalizing costs results in an immediate decrease in net income. e) None of the above 9. Buckeye Industries purchased a truck and trailer for $81,000. The appraised values of the truck and trailer are $57,000 and $28,500, respectively. What is the amount of the cost that should be assigned to the trailer? a) $28,500 b) $27,000 c) $24,000 d) $54,000 e) None of the above.