The book value of bonds payable
A)carrying amount
B)face value
C)callable bond
D)indenture
E)term bond
F)convertible bond
G)serial bond

Question

Quizplus · Accepted Answer

Book value refers to the carrying amount of the bond, which may differ from the face value (B). Callable bonds (C) allow the issuer to redeem the bond before maturity. An indenture (D) is a legal agreement between the issuer and bondholders that outlines the terms of the bond. Term bonds (E) mature on a specific date, while serial bonds (G) mature in installments over time. Convertible bonds (F) can be converted into common stock at the option of the bondholder. None of these terms directly relate to book value.

The Book Value of Bonds Payable