Which of the Following Statements About Bonds and Notes Is

Multiple Choice

Which of the following statements about bonds and notes is not correct?

A) A company can borrow the funds necessary to finance its activities using bonds or promissory notes.
B) Borrowings using bonds or notes 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 classified as noncurrent liability accounts.