Which of the Following Is TRUE of a Discount on Debentures

question 22

Multiple Choice

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

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

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