McG All of the following are examples of current abilities, except for A) hocrued expenses B) unnamed revenues c) interest payable D) prepaid expenses 2. Time value of money A) is generally used for valuing all liabilities B) B) reflects the difference between the value of a dollar today versus a dollar paldin the future C) c is not used for financial reporting purposes. D) is immaterial 3 Who should be responsible for preparing the bank reconciliation? A) the person who makes the deposits B) the person who writes the cheques C) the person who maintains the accounting records D) a person not involved in the day-to-day banking activities 4 Which of the following liabilities is often referred to as "free debt" because it rarely carries any interest if paid within a specified period of time? A) line of credit B) working capital loan c) accounts payable D) None of the above all current liabilities carry an interest rate 5 A long-term loan against which a building has been pledged is known as A) bank indebtedness B) Line of Credit c) Mortgage Payable. D) Lease Liability 6. For accounting purposes, the most important section of the articles of Incorporation is the description of A) the shares to be issued. B) the type of business to be conducted. C) how the board of directors will be organized. D) who will make up the management 7. If a bond is issued at a discount, the coupon rate is A) equal to the effective rate. B) less than the effective rate. c) greater than the effective rate. D) not needed to determine the bond's sale price. 8. Long-term liabilities include all of the following, except for A) future income taxes. B) lease liabilities. C) wage obligations D) pension liabilities. 9. The maximum number of shares that a firm can issue is the number of a A) authorized shares. B) outstanding shares. C) issued shares. D) permissible shares 10 When a company decides to repurchase shares it's previously sold, this is referred to A) retired share capital. 1) treasury shares C) a buyback D) contributed surplus