When making the adjustment for accrued interest the Bond Discount account was not taken into consideration. This error would cause:

Name: When making the adjustment for accrued interest the Bond Discount account was not taken into consideration. This error would cause:
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Question

Quizplus · Accepted Answer

The error would cause the period's net income to be overstated because the interest expense would be understated, leading to higher reported net income. The Bond Discount account affects the interest expense, not liabilities directly.

When Making the Adjustment for Accrued Interest the Bond Discount