Derecognition of debt occurs when all of the following occur, except when the ________.
A) bonds mature
B) bonds are revalued to fair market value
C) bonds are retired early to take advantage of lower market rates of interest
D) bondholders elect to convert the bonds to common stock

Question

Quizplus · Accepted Answer

Derecognition of debt occurs when the debt is settled or extinguished, such as when bonds mature, are retired, or converted. Revaluing bonds to fair market value does not result in derecognition.

Derecognition of Debt Occurs When All of the Following Occur