The Balance in Discount on Bonds Payable

question 117

Multiple Choice

The balance in Discount on Bonds Payable

• A) should be reported on the balance sheet as an asset because it has a debit balance
• B) should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the effective interest rate method
• C) would be added to the related bonds payable to determine the carrying amount of the bonds
• D) would be subtracted from the related bonds payable on the balance sheet

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Definitions:

Informational Social Influence

The influence to conform to what we believe others think is correct, often due to the desire or need for accuracy.

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A psychological phenomenon where an individual experiences discomfort resulting from holding two or more contradictory beliefs, ideas, or values.

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The belief or perception that one has the ability to influence the outcome of events in their own life.

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The tendency for people in a group to share or synchronize their emotional states with each other.