Indicate Whether Each of the Following Is True or False

question 29

Short Answer

Indicate whether each of the following is true or false. Peyton Company borrowed money from its bank in July 2013. The accrual of interest on the loan at the end of 2013
_____ a) does not affect cash flows.
_____ b) involves recognition of interest expense.
_____ c) decreases income for 2013.
_____ d) involves recognition of a liability.
_____ e) records a cash payment for interest.

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Definitions:

Taft-Hartley Act

A 1947 federal law that restricts the power and activities of labor unions.

Landrum-Griffin Act

This refers to a 1959 United States federal law that aims to protect union members from corrupt practices and to ensure democratic rights within unions.

Taft-Hartley Act

A federal law enacted in 1947 that restricts the activities and power of labor unions, also known as the Labor Management Relations Act.

Wagner Act

Also known as the National Labor Relations Act of 1935, it is a foundational statute of United States labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.