Bond discounts should be amortized to comply with the
A) cost principle.
B) matching process.
C) revenue recognition principle.
D) full disclosure principle.

Question

Quizplus · Accepted Answer

Bond discounts are amortized over the life of the bond to match the interest expense with the periods in which they are incurred, aligning with the matching principle. This ensures that the financial statements accurately reflect the costs associated with borrowing over the appropriate periods.

Bond Discounts Should Be Amortized to Comply with the