1- The journal entry a company uses to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

A. debit Accounts Payable; credit Notes Payable

B. debit Cash; credit Notes Payable

C. debit Notes Payable; credit Cash

D. debit Cash and Interest Expense; credit Notes Payable

2- A current liability is a debt that is reasonably expected to be paid

a. between 6 months and 18 months

. b. out of currently recognized revenues.

c. within one year.

d. out of cash currently on hand.

3- The current portion of long-term debt should

a. be classified as a long-term liability.

b. not be separated from the long-term portion of debt

c. be paid immediately.

d. be reclassified as a current liability.