FOR TRUE/FALSE QUESTIONS: If True mark A if False mark b FOR MULTIPLE CHOICE QUESTIONS. Choose the one alternative that best completes the statement or answers the question. 1) ks allows for reduced disclosure of contingent liabilities if the disclosure could increase the company's chance of losing a lawsuit. 2) What does the current ratio inform you about a company? A) The company's liquidity B) The extent of slow-moving inventories C) The company's profitability D) The efficient use of assets 3) An account which would be classified as a current liability is A) dividends payable in the form of a company's stock. B) losses expected to be incurred within the next twelve months in excess of the company's insurance coverage. C) accounts payable-debit balances. D) None of these answers are correct. 4) Which of the following is a part of the definition of a liability? A) Present obligation that entails settlement by probable future transfer or use of cash, goods, or services. B) Liquidation is reasonably expected to require use of existing resources classified as current assets or the creation of other current liabilities. C) Unavoidable obligation. D) Transaction or other event creating the liability has already occurred