True or False: (2 points each) Indicate whether each of the following statements is true (T) or false (F). Expenses incurred but not yet paid will result in what is commonly referred to as accrued liabilities. a. b. The term liquidity refers to how quickly a company can convert its assets into cash to pay operating costs and liabilities as they become due. When a company records a contingent liability, a revenue account is most likely debited. c. d. All contingent liabilities should be recorded and recognized in the liability section of the balance sheet. e. A liability should be classified as "current" if it is expected to be satisfied within one year or the normal operating cycle, whichever is shorter. The face value amount for a non-interest-bearing note payable includes the interest that will eventually be paid on the note. f. Multiple Choice: (5 pts each) Circle, highlight, or put an asterisk (*) beside the best response for each of the following multiple choice questions. There should be only once correct response per question. There is no partial credit on the multiple choice. 1. Which of the following statements does not describe an essential characteristic of a liability? A. A liability is a present obligation that will be settled by a probable future transfer or use of assets. B. The obligated entity has little or no discretion to avoid the future sacrifice. C. The identity of the recipient must be known to the obligated party. D. The transaction or event obligating the enterprise has already occurred