On the maturity date of bonds issued at a discount:
A)the Discount on Bonds Payable account has been fully amortized
B)the amount of the liability is equal to the face value of the bonds
C)the carrying value of the bonds is less than face value
D)both a and b are correct

Question

Quizplus · Accepted Answer

On the maturity date of bonds issued at a discount, the Discount on Bonds Payable account has been fully amortized, which means that the liability is equal to the face value of the bonds. Therefore, both options A and B are correct. The carrying value of the bonds is equal to the face value on the maturity date, so option C is incorrect.

On the Maturity Date of Bonds Issued at a Discount