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Which of the Following Is True Regarding the Account Entitled

Question 108

Multiple Choice

Which of the following is true regarding the account entitled, Premium on Bonds Payable?


A) It is an account that increases when amortization entries at made.
B) It is an account that appears on the balance sheet of the issuer as a deduction from bonds payable.
C) It is an account that decreases when amortization entries are made and its balance is equal to zero at the maturity date of the bond.
D) It is a contra account with a normal debit balance.

Correct Answer:

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