During a Reorganization, How Should Interest Expense Be Reported on the Financial

question 24

Multiple Choice

During a reorganization, how should interest expense be reported on the financial statements?

• A) On the income statement, but not classified as a reorganization item.
• B) On the income statement as a separate reorganization item.
• C) On the balance sheet as a prepaid expense.
• D) As a debit directly to retained earnings.
• E) On the balance sheet as an intangible asset.