Which of the following statements is incorrect? Select one: a. A lower current ratio indicates better liquidity. b. The comparison of current assets to current liabilities is called the current ratio and is an indicator of how liquid the company is. c. Too many current liabilities compared to current assets may prevent the company from securing a loan. d. The amount of current liabilities a company has can play a part in applying for a bank loan. Soft Hardware Store sells inventory to a customer for $2,000 cash plus PST on April 20, 2020. The provincial sales tax rate is 6%. Ignore the cost of goods sold. The journal entry to record the transaction will include a: Select one: a. Credit to PST Payable for $120 b. Credit to PST Payable for $90 c. Credit to Sales Revenue for $2,120 d. Debit to Cash for $2,000 When parts and labor are actually used to honor the warranty: Select one: a. Estimated warranty liability increases b. Profits decrease c. There is no change to the income statement d. Profits increase Current liabilities are usually paid with: Select one: a. Equity b. Capital assets c. Current assets d. Long-term notes Which of the following statement is incorrect? Select one: a. If the likelihood of the future event is reasonably possible, the contingent liability is disclosed in the notes to the financial statements according to the principle of full disclosure. b. If the likelihood of the future event is remote (unlikely), and if the amount is not significant, the contingent liability is either recorded in the accounting records or disclosed in the notes to the financial statements. c. If the likelihood of the future event is probable and the amount of the liability is estimable, the contingent liability is recorded in a journal entry and disclosed in the notes to the financial statements. d. If the likelihood of the future event is probable but the amount of the liability is not estimable, the contingent liability is disclosed in the notes to the financial statements according to the principle of full disclosure