1. The most common type of liability is a. One that comes into existence due to a loss contingency. b. One that must be estimated. C. One that comes into existence due to a gain contingency. d. One to be paid in cash and for which the amount and timing are known. 2. Which is not a characteristic of a liability? It represents a transfer of an economic resource. It must be payable in cash. C. It arises from present obligation to other entity. d. It results from past transaction or event. 3. Classifying liabilities as either current or noncurrent helps creditors assess ' a. Profitability b. The relative risk of an entity's liabilities C. The degree of an entity's liabilities d. The amount of an entity's liabilities 4. Short-term obligations are reported as noncurrent if a. The entity has a long term line of credit. b. The entity has tentative plan to issue long-term bonds payable. . The entity has the right at the end of the reporting period to defer settlement of the liability for at least 12 months after the end of the reporting period. d. The entity has the ability to refinance on a long-term basis