Discount on bonds payable (bond discount)is a liability valuation account.

Name: Discount on bonds payable (bond discount)is a liability valuation account.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

A discount on bonds payable represents the difference between the face value of a bond and the amount received from investors. It is recorded as a liability on the balance sheet and represents a reduction in the amount owed to bondholders. Therefore, it is a liability valuation account.

Discount on Bonds Payable (Bond Discount)is a Liability Valuation Account