Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
________ a)An eight-month,6% note for $10,000 will require the issuer to pay $600 in interest.
________ b)Interest expense is 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.