Over the term of the bonds, the balance in the Discount on Bonds Payable account will
A) fluctuate up and down if the market is volatile.
B) decrease.
C) increase.
D) be unaffected until the bonds mature.

Question

Quizplus · Accepted Answer

The balance in the Discount on Bonds Payable account will decrease over time as the discount is amortized, reducing the discount balance and increasing the carrying amount of the bonds payable.

Over the Term of the Bonds, the Balance in the Discount