True or False?

1. Total interest cost for a bond issued at a premium equals the total of the periodic interest payments added to the premium.

2. All contingent liabilities should be classified as either current or long-term liabilities on the statement of financial position for the current period.

3. A liability, to be reported on the statement of financial position, must have a fixed, known amount to be paid in the future.

4. The present value of an annuity is a function of the interest (discount) rate and the periodic payment amount.

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