Indicate Whether Each of the Following Statements About Bonds Payable

question 126

Short Answer

Indicate whether each of the following statements about bonds payable is true or false.
_____ a)Premium on Bonds Payable is recorded when bonds are issued at less than their face value.
_____ b)Premium on Bonds Payable is a liability account.
_____ c)The balance in the Discount on Bonds Payable account increases liabilities.
_____ d)Discount on Bonds Payable is an expense account.
_____ e)A discount on bonds payable occurs when the stated interest rate on the bonds is less than the market or effective interest.

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Definitions:

Rotor Construction

The design and assembly of the rotating component within an electric motor or generator.

Generator Power

The amount of electrical power, usually measured in watts (W) or kilowatts (kW), that a generator can produce.

Conductive Compensation

A method of connecting the compensating winding in a universal motor.

Compensating Winding

The winding embedded in the main field poles of a DC machine. The compensating winding is used to help overcome armature reaction.