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 initially recorded with a journal entry that debits cash and credits the relevant liability account.
C)The journal entry that records 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.

Question

Quizplus · Accepted Answer

This statement is not always true. Bonds payable and notes payable can be classified as either current or non-current liabilities depending on their maturity dates. If the bond or note is due within a year, it should be recorded as a current liability.

Which of the Following Statements Is Not True