True or False
1. ____ Contingent gains should only be recorded if they are probable and can be reasonably estimated.
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2. ____ A current ratio of less than one means that a company has more current assets than current liabilities.
3. ____ A long-term note payable is an example of a current liability.
4. ____ Restatement of financial statements should occur if a company attempts to mislead investors by understating its liabilities.
5. ____ Embedded and extended warranties should be accounted for in the same way.
6. ____ When estimating its warranty liability, a company should consider things like the state of the economy.
7. ____ Contingent liabilities should be reported on the balance sheet if they are both probable and can be reasonably estimated.
8. ____ Age of accounts payable can help users determine if a company is having trouble paying its bills.
9. ____ Unearned revenue and accounts receivable are examples of current liabilities.
10. ____ Liabilities for gift cards and similar items must be kept on the balance sheet until they are redeemed, regardless of how long that takes.