Theoretically, the costs of issuing bonds could be
A) expensed when incurred.
B) reported as a reduction of the bond liability.
C) debited to a deferred charge account and amortized over the life of the bonds.
D) any of these answers are correct.

Question

Quizplus · Accepted Answer

Theoretically, all the options are acceptable accounting treatments for the costs of issuing bonds, depending on the accounting policies and standards applied.

Theoretically, the Costs of Issuing Bonds Could Be