TRUE OR FALSE Interest is stated in terms of an annual percentage rate to be applied to the face value of the loan.

The employer is required to match the amount of FICA taxes withheld for each employee, effectively doubling the amount paid into Social Security.

A contingent liability is recorded only if a loss is at least reasonably possible and the amount is reasonably estimable.

A lower current ratio or acid-test ratio generally indicates a greater ability to pay current liabilities on a timely basis.