TRUE OR FALSE?

A note payable which is due in more than 12 months is a long-term liability.

To record any liability, the payment must be probable and reasonably estimated.

A pending court case with a probable unfavorable outcome is an example of a contingent liability which should be disclosed on the balance sheet but does not require footnote disclosure.

Federal unemployment insurance paid should be included in an employers payroll tax expense.

Stock dividends and liquidated dividends are similar in that both do not change total stockholders equity.

The condition for bond issued at a premium is that the market rate is less than the effective interest rate of interest.

A company uses the effective interest method of amortization for a bond issued as a premium. In the early years of the life of the bond, the interest expense will be less than the interest paid. In the later years of the bonds life, the interest expense will be greater than the interest paid.