Indicate whether each of the following statements is true or false.

_____ a) An eight-month, 6% note for $10,000 will require the issuer to pay $600 in interest.
_____ b) Interest expense is considered an operating expense on the income statement.
_____ c) Payment of interest is considered an operating activity on the statement of cash flows.
_____ d) Payment of interest on a one-year note due on March 1 will include a reduction in liabilities.
_____ e) The adjusting entry to recognize interest expense is an asset use transaction.

Answer rating: 100% (QA)

Answer a is False 8 month 6 note for 10000 will require the issuer to pay 400 610000812 i... View the full answer