Which of the following is not true for a 10-year bond issued at a discount?
A)At the end of ten years,the balance in the Discount on Bonds Payable account will equal 0.
B)At the end of ten years,the carrying value will equal the face value.
C)At the end of ten years,the total interest expense will reflect the market rate of interest.
D)At the end of ten years,the total interest expense will equal the total interest paid.

Question

Quizplus · Accepted Answer

The total interest expense will not equal the total interest paid because the bond was issued at a discount, meaning the interest expense includes both the cash interest paid and the amortization of the discount.

Which of the Following Is Not True for a 10-Year