Bonds discount and bonds premium are liabilities to the corporation.

Name: Bonds discount and bonds premium are liabilities to the corporation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Bonds discount and bonds premium are not liabilities to the corporation. They are adjustments to the face value of the bond that reflect the difference between the issue price and the face value. This adjustment is amortized over the life of the bond and affects the interest expense recognized on the income statement.

Bonds Discount and Bonds Premium Are Liabilities to the Corporation