If a Company Sells Its 20-Year Bonds at a Discount

question 128

Multiple Choice

If a company sells its 20-year bonds at a discount, how is the discount account reported on the balance sheet?

• A) unearned liability
• B) addition to the bonds payable
• C) accrued expense
• D) deduction from bonds payable

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Definitions:

Stress

The body's response to any demand or challenge, which can be caused by both positive and negative experiences and can affect an individual's mental and physical health.

Immune System

The complex network of cells, tissues, and organs that work together to defend the body against infections, diseases, and foreign substances.

Antigens

Substances that provoke an immune response, leading to the production of antibodies as part of the body's defense against infections and diseases.

Cancer Cells

Abnormal cells that divide uncontrollably and may invade nearby tissues or spread to other parts of the body.