Use the Present Value and Future Value Tables Included in Appendix

question 113

Multiple Choice

Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-When a company issues bonds, how are unamortized bond discounts and premiums classified on the balance sheet?

• A) Bond discounts are classified as assets, and bond premiums are classified as contra-asset accounts
• B) Bond discounts are classified as expenses, and bond premiums are classified as revenues
• C) Bond premiums are classified as additions to, and bond discounts are classified as deductions from, the face value of bonds
• D) None of these are correct

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