D Question 1 1 pts Contingent liabilities are recorded when the probability of gain is: More than one answer is correct Remote Reasonably Likely O No answer is correct Probable D Question 2 1 pts If a company purchases office supplies with cash, how will this change the company's acid-test ratio? decrease no change increase Question 3 1 pts Contingent liabilities are disclosed when the probability of loss is: Probable No answer is correct More than one answer is correct Remote Reasonably Likely D Question 4 1 pts A warranty expense will be recorded the same year the product is sold. True False A warranty expense is recorded when the product is fixed. True False D Question 6 1 pts The current ratio is a more exact than the quick ratio because the current ratio only takes into account the assets that are quickly converted to cash. True False D Question 7 1 pts Notes payable is listed as a long term asset until the entire amount is paid in full True False employers have to pay FICA tax True False > Question 9 1 pts When a customer pays sales tax for purchasing merchandise, the sales tax is a liability of the company. True False Question 10 1 pts Deferred Revenue is a revenue account which is closed to retained earnings at the end of the period. True False