FRA - Understanding balance sheets

CFA Level I FRA
#1

Q1. Which of the following most likely result in a current liability?

  1. possible warranty expense

  2. future operating lease payments

'3. estimated income taxes for the current year

Q2. How should the proceeds received from the advance sale of tickets to a sporting event be treated by the seller, assuming tickets are nonrefundable?

  1. Unearned revenue is recognized to the extent that costs have been incurred.

  2. Revenue is recognized to the extent costs have been incurred

  3. Revenue is deferred until the sporting event is held.

Please give proper explanations, reasons for eliminating and choosing.

#2

Q1. Possible Warranty expense looks like an off balance sheet item. Warranty expense will be recognised only when incurred. Other two don’t seem “owed” /“accrued” yet. May be that portion Income Tax that is already incurred.