Which of the Following Statements Is Not True

question 38

Multiple Choice

Which of the following statements is not true?

• A)Bonds and promissory notes are two ways a company can borrow the funds necessary to finance its activities.
• B)Both bonds payable and notes payable are typically initially recorded with a journal entry that debits cash and credits the relevant liability account.
• C)The journal entry recording interest owed on bonds and notes includes a debit to interest expense and a credit to interest payable.
• D)Bonds payable and notes payable are always non-current liability accounts.

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Definitions:

Independent Events

Events whose occurrence or outcome is not influenced by the occurrence or outcome of another event.

P(A and B)

The probability that both events A and B occur.

P(A)

The probability of event A occurring, an elementary concept in probability and statistics.

P(B)

The likelihood that event B will happen.