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:

Financial Responsibility

The ability to manage one's financial resources wisely, including saving, investing, and spending in a manner that ensures long-term financial stability.

Syndicate Buys

Refers to a group of investors or underwriters pooling together to buy the entire or a large portion of a new securities issue for resale.

Dutch Auction

A method of public offering in which the price of the offering is set after taking in all bids and determining the highest price at which the total offering can be sold.

Competitive Bidding

Competitive bidding is a procurement process where several suppliers or contractors submit their bids to win a contract for providing goods or services, ensuring transparency and fairness in the selection process.