Indicate whether each of the following is true or false.Perez Company borrowed money from its bank in July Year 1.The accrual of interest on the loan at the end of Year 1:
________ a)reduces cash flows.
________ b)involves recognition of interest expense.
________ c)does not affect income for Year 1.
________ d)involves recognition of a liability.
________ e)records a cash payment for interest.

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The Answer of Indicate whether each of the following is true or false.Perez Company borrowed money from its bank in July Year 1.The accrual of interest on the loan at the end of Year 1:
________ a)reduces cash flows.
________ b)involves recognition of interest expense.
________ c)does not affect income for Year 1.
________ d)involves recognition of a liability.
________ e)records a cash payment for interest.

Indicate Whether Each of the Following Is True or False