Which of the Following Is True of the Discount on Bonds

question 12

Multiple Choice

Which of the following is true of the Discount on Bonds Payable account?

• A)It is added to the Bonds Payable balance and shown with long-term liabilities on the balance sheet.
• B)It is subtracted from the Bonds Payable balance and shown with the current liabilities on the balance sheet.
• C)It is added to the Bonds Payable balance and shown with stockholders' equity on the balance sheet.
• D)It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet.

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Definitions:

Units

A standard or basic quantity into which an item of supply is divided, issued, or used.

Clothing

Garments and articles worn on the body, typically made from fabric or textiles.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford given their income and the prices of goods and services.

Income

The sum of all a household’s wages, salaries, profits, interest payments, rents, and other forms of earnings in a given period of time. It is a flow measure.