The "Discount on Bonds Payable" Account Is __________When a Bound

question 250

Multiple Choice

The "discount on bonds payable" account is __________when a bound sells at discount. The "premium on bond payable" is ____________ when a bond sells a premium.

• A) Credited, debited
• B) Debited, credited
• C) Accrued, debited
• D) Deferred, debit

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Definitions:

Chapter 13

A type of bankruptcy in the United States that allows individuals with a regular income to develop a plan to repay all or part of their debts under court supervision.

Debtor's Estate

All legal or equitable interests of the debtor in property at the time of the bankruptcy filing.

Liquidation Proceeding

A legal process in which a business closes down and its assets are distributed to claimants.

Chapter 7

A provision of the US Bankruptcy Code that involves the liquidation of a debtor's assets to pay off creditors.