Solved

The Discount on Bonds Payable Account

Question 26

Multiple Choice

The Discount on Bonds Payable account:


A) is a contra account to Bonds Payable.
B) will cause interest expense to be less than cash interest payable.
C) is increased over the life of the bond until it equals the bond's face value.
D) is an adjunct account to Bonds Payable.

Correct Answer:

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