6:16 . HW 5 - Chapter 11-1.pdf - Read-only ments 1 LO 1,6 CASH FLOW EXERCISES: SET B Issues in Accounting for Liabilities E1B. CONCEPT Indicate whether each of the following actions relates to (a) man- aging liquidity and cash flows, (b) recognition of liabilities, (c) valuation of liabilities, (d) classification of liabilities, or (e) disclosure of liabilities: 1. Setting a liability at the fair market value of goods to be delivered. 2. Relating the payment date of a liability to the length of the operating cycle. 3. Recording a liability in accordance with the accrual accounting. 4. Providing information about financial instruments on the balance sheet. 5. Estimating the amount of "cents-off coupons that will be redeemed. 6. Categorizing a liability as long-term debt. 7. Measuring working capital. 8. Comparing days' payable with last year. Interest Expense on Note Payable LO 2