Over the Term of the Bonds, the Balance in the Discount

question 13

Multiple Choice

Over the term of the bonds, the balance in the Discount on Bonds Payable account will

• A) fluctuate up and down if the market is volatile.
• B) decrease.
• C) increase.
• D) be unaffected until the bonds mature.

---

Definitions:

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.