Over the term of a bond, if it is issued at a discount, the balance in the Bonds Payable account will
A)increase.
B)decrease.
C)fluctuate up and down depending on the market rate.
D)be unaffected until the bonds mature.

Question

Quizplus · Accepted Answer

When a bond is issued at a discount, the bond's carrying amount increases over time as the discount is amortized, leading to an increase in the Bonds Payable account balance until it reaches the face value at maturity.

Over the Term of a Bond, If It Is Issued