1. By not accruing warranty expenseA. reported expenses will be overstated and r

1. By not accruing warranty expenseA. reported expenses will be overstated and reported liabilities will be understated.B. reported liabilities will be understated and net income will be overstated.C. reported liabilities will be overstated and net income will be understated.D. reported expenses will be understated and net income will be understated.2. A company receives a note payable for $3500 at 9% for 45 days. How much interest (to the nearest cent) will the customer owe using a 360-day year?A. $39.38B. $315.00C. $38.84D. $354.383.Which of the following would be considered a contingent liability?A. Accounts payable obligationB. Pending legal actionC. Sales tax obligationD. Mortgage obligation4. Which of the following would be considered a cash equivalent?A. Time depositsB. Money ordersC. ChecksD. Currency