The amortization of discount on bonds payable reduces the amount of interest expense recognized during the period.

Name: The amortization of discount on bonds payable reduces the amount of interest expense recognized during the period.
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The amortization of discount on bonds payable increases the amount of interest expense recognized during the period because it adds to the cash interest payment the portion of the bond discount being amortized.

The Amortization of Discount on Bonds Payable Reduces the Amount