If There Is a Loss on Bonds Redeemed Before Maturity

question 96

Multiple Choice

If there is a loss on bonds redeemed before maturity, it is

• A) debited directly to Retained Earnings.
• B) reported as "Other Expenses" on the income statement.
• C) reported as a reduction in interest revenue on the income statement.
• D) debited to Interest Expense, as a cost of financing.

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