Indicate whether each statement is TRUE OR FALSE. 1) A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. 2) A company cannot have a liability if the amount of the obligation is unknown. 3) A liability may exist even if there is uncertainty about whom to pay, when to pay, or how much to pay. 4) Unearned revenues are current liabilities. 5) Vacation benefits are not directly paid to employees; thus, a journal entry to recognize a liability is not necessary. 6) A contingent liability is a potential obligation that depends on a future event arising from a past transaction or event. 7) Payroll is an example of a contingent liability for the employer. 8)The full disclosure principle requires the reporting of contingent liabilities that are reasonably possible. 9) Uncertainties from the development of new competing products are contingent liabilities. 10) A potential lawsuit claim is disclosed when the claim can be reasonably estimated and it is reasonably possible. 11) A low value for the times interest earned ratio means that a company is a lower risk borrower. 12) The state unemployment tax rates applied to an employer are adjusted according to an employer's merit rating. 13) The amount of FICA tax that employers must pay is twice the amount of the FICA taxes withheld from their employees. 14) Employers must keep individual earnings reports for each employee. 15) The Form W-2 must be distributed (in the mail) to employees by January 31 following the year covered by the Form W-2. 16) FUTA requires employers to pay a federal unemployment tax on all salary or wages paid to each employee. 17) A known obligation of an uncertain amount that can at least be reasonably estimated is reported as an estimated liability. 18) Accounts payable are a form of contingent liability for an employer. 19) Each employee records the number of withholding allowances claimed on the withholding allowance certificate that is filed with the employer, which is the Form W-4. 20) The report that shows the pay period dates, hours worked, gross pay, deductions, and net pay of each employee for every pay period is the payroll register.