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Discount on Bonds Payable
Discount on bonds payable represents the difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.
Premium on Bonds Payable
The excess of a bond's selling price over its principal amount.
Debenture Bonds
Fixed-interest unsecured loans issued by companies, backed only by the creditworthiness and reputation of the issuer, rather than by a lien on any specific asset.
Straight-Line Method
A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.
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