ployment disability benefits; d. Medical benefits. Answer:E. All of the above. 19. T, F. Current Assets Minus Current Liabilities is known as Working Capital. 20. T, F. Current ratio is current liabilities divided by current assets. 21. T, F. Contingent liability is a potential liability that may become an actual liability if associated future event occurs. 22. The time period for classifying a liability as current is one year or the operating cycle whichever is: Answer: a. Longer b. Shorter c. Probable d. Possible e. None of the above 23. MM Company borrowed $88,500 on September 1, 2014 from Sandwich State Bank by signing an note with one year interest of 12%. What is the accrual interest as of December 31, 2014? a. $2,655 b. $4,425 Answer: c. $3,540 d.$10,620 e. None of the above NAM