The balance in a bond discount account should be reported on the balance sheet as a deduction from the related bonds payable.

Question

Quizplus · Accepted Answer

This is true as the bond discount account represents the amount by which the face value of a bond is less than the amount paid for it. Thus, it represents a reduction in the amount owed to bondholders and should be shown as a deduction from the related bonds payable on the balance sheet.

The Balance in a Bond Discount Account Should Be Reported