1. Distinguish between a current liability and a contingent liability. Give two examples of each.
 
 
 
 
 
 
 
 
 
 
 

2. When can a short term obligation that a debtor expects to refinance be classified as a long term liability?
 
 
 
 
 
 
 
 
 
 
 

3. What is the nature of a "discount" on notes payable?
 
 
 
 
 
 
 

4. What is the difference in accounting for gain contingencies and loss contingencies?