Which of the Following Is TRUE of a Premium on Debentures

question 95

Multiple Choice

Which of the following is TRUE of a premium on debentures payable?

• A)A premium on debentures payable is subtracted from the debentures payable balance and shown with the current liabilities on the balance sheet.
• B)A premium on debentures payable is added to the debentures payable balance and shown with non- current liabilities on the balance sheet.
• C)A premium on debentures payable is added to the debentures payable balance and shown with owners' equity on the balance sheet.
• D)A premium on debentures payable is subtracted from the debentures payable balance and shown with non- current liabilities on the balance sheet.

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Definitions:

Mean

The arithmetic average of a set of numbers, calculated by adding them all up and dividing by the quantity of numbers.

Standard Score

A score that expresses an individual's position relative to the mean, based on the standard deviation of the scores in the distribution.

Standard Deviations

A metric that calculates the degree of spread or variability of data points relative to their average value.

Mean

The mean is the average of a set of numbers, calculated by dividing the sum of all values by the number of values.