Amortizing the discount on a bond payable:
A) increases the carrying amount of the bonds
B) increases the face value of the bonds
C) decreases the carrying amount of the bonds
D) decreases the face value of the bonds

Question

Quizplus · Accepted Answer

Amortizing the discount on a bond payable increases the carrying amount of the bonds. This is because the process involves gradually writing off the discount amount over the life of the bond, which increases the book value (carrying amount) of the bond towards its face value.

Amortizing the Discount on a Bond Payable