If bonds are issued at a premium, the carrying amount of the bonds will be greater than the face value of the bonds until it reaches the maturity date.

Question

Quizplus · Accepted Answer

When bonds are issued at a premium, it means that they are sold at a price higher than their face value. This premium is amortized over the life of the bonds, which means that the carrying amount of the bonds will be greater than their face value until they reach maturity. Therefore, the given statement is true.

If Bonds Are Issued at a Premium, the Carrying Amount