ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 271

IFRS questions are available at the end of this chapter.

TRUE-FALSE—Conceptual

1. A zero-interest-bearing note payable that is issued at a
discount will not result in any interest expense being recognized.

2. Dividends in arrears on cumulative preferred stock should
be recorded as a current liability.

3. Magazine subscriptions and airline ticket sales both result
in unearned revenues.