6. Interest expense is not: A) Incurred on current liabilities B) Reported on the income statement C) A fixed expense D) Likely to fluctuate when sales change E) A factor in determining a company's borrowing 7. Obligations not expected to be paid within the longer of one year or the company's operating cycle are reported as: A) Current assets B) Current liabilities C) Long-term liabilities D) Operating cycle liabilities E) Bills 8. A company has advance subscription sales totaling $45,000 for the upcoming year when four quarterly journals will mailed to customers. When the company mails the first quarterly journal to customers, it should record: A) Debit Prepaid Subscriptions $33,750; credit Unearned Revenue $33,750 B) Debit Unearned Revenue $45,000; credit Cash $45,000 C) Debit Cash $11,250, credit Sales $11,250 D) Debit Unearned Revenue $11,250, credit Sales $11,250 E) Debit Prepaid Subscriptions $11,250, credit Sales $11,250 9. Uncertainties such as natural disasters are: A) Not contingent liabilities because they are future events not arising from past B) Contingent liabilities because they are future events arising from past transactions or events C) Disclosed because of their usefulness to financial statements D) Estimated liabilities because the amounts are uncertain E) Reported in the same way as debt guarantees