Which of the Following Are TRUE for Discount Bonds

question 79

Multiple Choice

Which of the following are TRUE for discount bonds?

• A)A discount bond is bought at par.
• B)The purchaser receives the face value of the bond at the maturity date.
• C)U)S. Treasury bonds and notes are examples of discount bonds.
• D)The purchaser receives the par value at maturity plus any capital gains.

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Definitions:

Temporary

In accounting, temporary refers to accounts that are closed at the end of an accounting period, such as revenues, expenses, and dividends.

Forthcoming Year

The approaching or upcoming calendar year.

Long-term Debt

Debt obligations of a business that are due more than one year in the future, often used for large purchases or investments.

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.