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Amortization of a Bond Discount

Question 71

Multiple Choice

Amortization of a bond discount:


A) Increases the Bonds Payable account.
B) Decreases the Bonds Payable account.
C) Allocates the amount of the discount over the life of the bond.
D) Creates a Discount Payable account.
E) None of these answers is correct.

Correct Answer:

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