Quiz Ch 08 – T/F Recognition of Interest Expense on Note Payable
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
The recognition of interest expense on a note payable occurs solely upon its maturity.
The recognition of interest expense on a note payable occurs solely upon its maturity.
Businesses often utilize short-term notes payable to banks as a means of financing their operations.
Long-term debt agreements are usually designed to be repaid through a series of installments.
Accounts Payable turnover is crucial for retail liquidity assessment.
Accounts payable represent owed amounts for purchased goods/services.
Accounts payable turnover measures how often a company pays its payables daily.
A contingent liability is a potential obligation that relies on the future outcome of past events.
A possible duty linked to past occurrences’ future consequences is contingent liability.
Current liabilities are due within a year or operating cycle.
Long-term liabilities are mainly used for operating activities.