When Bonds Are Retired at Their Maturity Date,the Balance in the Bonds

question 195

Multiple Choice

When bonds are retired at their maturity date,the balance in the Bonds Payable account is equal to the bond's:

• A)face value minus any premium amortized.
• B)face value plus interest to be paid.
• C)face value plus any discount amortized.
• D)face value.

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Definitions:

Days' Payable Outstanding

A financial metric that measures how long it takes a company to pay its invoices from suppliers, reflecting on cash management practices.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services purchased on credit.

Cost of Goods Sold

Represents the direct costs attributable to the production of goods sold by a company, including material and labor costs.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or sold but not yet paid for.