Knowledge Check 01 Which of the following statements about long-term liabilities are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) U A long-term liability will be paid in cash or fulfilled after one year or the current operating cycle, whichever is shorter. A long-term liability will be received in cash or fulfilled after one year or the current operating cycle, whichever is longer. Common long-term liabilities include long-term notes payable, deferred income taxes, and bonds payable. Noncurrent liabilities include all liabilities other than those classified as current. Knowledge Check 01 Which of the following statements about bond amortization are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) U When bonds are issued at a discount, bond amortization causes the Interest Expense to be less than the interest payment and, at the same time, causes Discount on Bonds Payable to decrease each period. When bonds are issued at a discount, bond amortization causes the Interest Expense to be greater than the interest payment and, at the same time, causes Discount on Bonds Payable to decrease each period. U When bonds are issued at a premium, bond amortization causes the Interest Expense to be less than the interest payment and, at the same time, causes Premium on Bonds Payable to decrease each period. When bonds are issued at a premium, bond amortization causes the Interest Expense to be more than the interest payment and, at the same time, causes Premium on Bonds Payable to decrease each period