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Premium On Bonds Payable
The amount by which the bond's selling price exceeds its face value, representing additional cost to the issuer.
Loss On Bond Retirement
A financial loss that occurs when a bond is redeemed before its maturity date and the redemption value exceeds its carrying value.
Interest Payable
A liability account showing the amount of interest expense that has been incurred but not yet paid as of the balance sheet date.
Effective Interest Method
A technique used in accounting to allocate interest expense or income over the life of a financial instrument at a constant interest rate.
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