23. Interest expense on an interest-bearing note is: a) always equal to zero. b) accrued over the life of the note. c) only recorded at the time the note is issued. d) only recorded at maturity when the note is paid. 24. The current portion of long-term debt should: a) be paid immediately. b) be reclassified as a current liability. c) be classified as a non-current liability. d) not be separated from the non-current portion of debt. 25. Unearned revenue is initially recognized with a: a) debit to cash and credit to revenue. b) debit to cash and credit to unearned revenue. c) debit to revenue and credit to cash. d) debit to unearned revenue and credit to cash. 26. Cameron Company sells 2,000 units of its product for $ 500 each in 2021. The selling price includes a one-year warranty on parts. It is expected that 3% of the units will be defective and that repair costs will average $ 100 per unit. In 2021, warranty contracts are honoured on 40 units for a total cost of $ 4,000. What amount should Cameron Company record in 2021 for warranty expense? a) $ 6,000. b) $ 4,000. c) $ 2,000. d) $ 30,000. 27. If a liability is dependent on a future event, it is called a: a) potential loss. b) hypothetical loss. c) probabilistic loss. d) contingent loss. 28. Disclosure of a contingent loss is usually made: a) parenthetically, in the body of the balance sheet. b) parenthetically, in the body of the income statement. c) in a note to the financial statements. d) in the management discussion section of the financial statement