True/False 1. Accounts payable may also be referred to as trade payables Evillidall bersmiles ne et priwelled and to singwy & and are the result of goods that have been purchased on credit.leb True False Bidsyed 2. Cash payments received in advance of goods being provided or services being performed should still be recorded as revenues. True False nu (6 3. A current liability to the federal government arises when a True ( False 103 (5 business sells an item and collects HST on it. thard sunsver Hiler ab enegro patdoism to 3. A company with an operating line of credit has beenTrue False going) (b pre-authorized by the bank to borrow money, up to a certain amount. Jis el beau sis ammond slavol samotano .a 4. Interest expense should not be recorded prior to True False maturity. 5. Current maturities of long-term debt are identified TrueFalse on the balance sheet as current liabilities. 6. Under ASPE a contingent liability is recorded if it is True False likely and the amount can be reasonably estimated. 7. If the total receipts of $5,300 include 13% HST, True False the HST is equal to $518.3. A company with an operating line of credit has been pre-authorized by the bank to borrow money, up to a True Falsetto polbrough tb certain amount. 4. Interest expense should not be recorded prior to Work True maturity. False 5. Current maturities of long-term debt are identified True False on the balance sheet as current liabilities. 6. Under ASPE a contingent liability is recorded if it is True False likely and the amount can be reasonably estimated. 7. If the total receipts of $5,300 include 13% HST, True False the HST is equal to $518. Multiple Choice 1. When a company is overdrawn at the bank as a result of using its line of credit, the amount would be shown on the balance sheet as a) a current asset with a debit balance. b) a current asset with a credit balance. c) a contra account to accounts receivable. d) a current liability. 2. Recording accrued interest on a note payable would include a a) credit to cash b) debit to notes payable. c) credit to interest payable