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:

Implied Right

A right that is not explicitly stated but is considered to exist due to its necessity or because it is not forbidden.

Preponderance of the Evidence

A standard of proof in civil cases, requiring that the evidence shows that something is more likely to be true than not.

Lakeside Property

Real estate located adjacent to or near the shore of a lake, often sought after for its scenic views and recreational opportunities.

Apparent Agency

A situation in which a principal creates a reasonable impression that an agent has authority to act on their behalf.