TRUE/FALSE. Write 'T' If the statement is true and 'F if the statement is 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) Obligations not due within one year are reported as current liabilities. 3) A bond with a par value of $1,000 trading at 101% sells for a premium. 4) An advantage of bond financing is that issuing bonds does not affect owner control 5) Periodic interest payments on bonds are determined by multiplying the par value of the bond by the contract rate. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 6) Obligations to be paid within one year or the company's operating cycle, whichever is longer, are: A) Current liabilities. B) Bills. C) Current assets. D) Operating cycle liabilities. E) Earned revenues. 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) Bills. C) Operating cycle liabilities. D) Long-term liabilities. E) Current liabilities. 8) Accounts payable are: A) Always payable within 30 days. B) Estimated liabilities. C) Not usually due on specific dates. D) Long-term liabilities. E) Amounts owed to suppliers for products and/or services purchased on credit