Indicate Whether Each of the Following Statements Is True or False

question 11

Short Answer

Indicate whether each of the following statements is true or false.
_____ a) An eight month, 6% note for $20,000 will require the issuer to pay $1,200 in interest.
_____ b) Interest expense is not considered an operating expense on the income statement.
_____ c) Payment of interest is considered an operating activity on the statement of cash flows.
_____ d) Payment of interest on a one-year note due on March 1 will include a reduction in liabilities.
_____ e) The adjusting entry to recognize interest expense is an asset use transaction.

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Definitions:

Shift-Work

Employment practice designed to use all 24 hours of the clock by rotating employees through a set schedule of working and non-working periods.

High-Profile Area

A location or sector that receives a significant amount of public attention and visibility, often associated with prestige or high stakes.

Scientific Management

Development of the “one best way” to engage in a work process using the scientific principles established by Frederick Winslow Taylor.

Aspirations of Employees

Refers to the goals, ambitions, and desires that workers hold regarding their careers, workplace conditions, and progression opportunities.