If There Is a Loss on Bonds Redeemed Early, It

question 165

Multiple Choice

If there is a loss on bonds redeemed early, it is

• A) debited directly to Retained Earnings.
• B) reported as an "Other income and expense" on the income statement.
• C) reported as an "operating expense" on the income statement.
• D) debited to Interest Expense, as a cost of financing.

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Definitions:

Sponges

Simple aquatic animals belonging to the phylum Porifera, characterized by porous bodies through which water flows.

Echinoderms

A phylum of marine animals including sea stars, sea urchins, and sand dollars, characterized by radial symmetry and a unique water vascular system.

Nematodes

A phylum of worm-like organisms known as roundworms, which can be found in various habitats and play diverse ecological roles.

Cnidarians

A phylum of aquatic invertebrate animals that includes corals, jellyfish, sea anemones, and hydras, characterized by their cnidocytes, stinging cells used for prey capture and defense.