Statement 1: If at the end of the reporting period, the discount period is not yet lapsed and the accounts are still unpaid, the company must recognize a purchase discount under the gross method. Statement 2: Non-trade payables are classified either as current or non-current liabilities base on their expected timing of settlement as the end of the reporting period. Statement 3: When discount on notes payable account is amortized, it decreases the carrying value of the liability.     a.Two of the statements are false. b.One of the statements is false. c.All of the statements are true. d. None of the statements is tru

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Statement 1: If at the end of the reporting period, the discount period is not yet lapsed and the accounts are still unpaid, the company must recognize a purchase discount under the gross method.

Statement 2: Non-trade payables are classified either as current or non-current liabilities base on their expected timing of settlement as the end of the reporting period.

Statement 3: When discount on notes payable account is amortized, it decreases the carrying value of the liability.
 
 
a.Two of the statements are false.
b.One of the statements is false.
c.All of the statements are true.
d. None of the statements is true.
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