Indicate Whether Each of the Following Is True or False

Short Answer

Indicate whether each of the following is true or false.Perez Company borrowed money from its bank in July Year 1.The accrual of interest on the loan at the end of Year 1:
________ a)reduces cash flows.
________ b)involves recognition of interest expense.
________ c)does not affect income for Year 1.
________ d)involves recognition of a liability.
________ e)records a cash payment for interest.