a. current liabilities. b. deferred charges. c. long-term liabilities. d. intermediate debt.
25. Which of the following is not true about the discount on shortterm notes payable?
a. The Discount on Notes Payable account has a debit balance.
b. The Discount on Notes Payable account should be reported as an asset on the balance sheet.
c. When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate.
d. All of these are true. 26. Which of the following may be a current liability? a. Withheld Income Taxes b. Deposits Received from Customers c. Deferred Revenue d. All of these 27. Which of the following items is a current liability?
a. Bonds( for which there is an adequate sinking fund properly classified as a long-term investment) due in three months.
b. Bonds due in three years.