Which of the Following Statements Regarding Bonds Payable Net of a Discount

question 20

Multiple Choice

Which of the following statements regarding bonds payable net of a discount or premium is NOT true?

• A) If a company records a discount or premium with the bonds payable in a single account called Bonds Payable, Net, it can use the simplified effective interest method of amortization.
• B) When bonds payable are accounted for net of a discount, the initial amount recorded in the Bonds Payable, Net account is the issue price of the bond.
• C) When bonds are accounted for net of a premium, the balance in the Bonds Payable, Net account will increase as the bond approaches the maturity date.
• D) If a company issued bonds at their face value, the balance of Bonds Payable, Net account will always be

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Definitions:

Reconsolidation

The process by which memories, once recalled, are stored again for long-term storage, potentially allowing for their modification.

Long-Term Memory

The segment of the memory system responsible for storing information over extended periods, from hours to a lifetime.

Traumatic Experience

An emotional or psychological response to an event or circumstance that is deeply disturbing or distressing.

Memory

The capability of the mind to retain and recall information.