1. Vacation pay and sick leaves are examples of contingent liabilities that a company generally should recognize on its financial assets.
a) true
b) false
2. Rush Corporation borrowed $50,000 on Jan 1, 2014. The loan is for a five year period and has an annual interest rate of 8%. At the end of each year. Rush will make a payment of $12,522.82 , which includes both principal and interest. The amount of the payment for 2012 that is the reduction and principal $8502.82
a) true
b) false