The Balance in the Bonds Payable Account Is a Credit

question 30

Multiple Choice

The balance in the Bonds payable account is a credit of $50,000.The balance in the Discount on bonds payable account is a debit of $1,500.How much is the bond carrying amount?

• A) $1,500
• B) $50,000
• C) $51,500
• D) $48,500

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Definitions:

Bank Audits

A thorough examination of a bank's records and financial statements to ensure accuracy, compliance with regulations, and soundness of financial practices.

Short Run

A period during which at least one factor of production is considered fixed and cannot be varied.

Long Run

In the long run refers to an extended period of time during which all factors of production and costs can be fully adjusted, often used in economics to discuss theoretical outcomes.

Tax Purposes

The reason or context within financial and legal frameworks for which taxes are assessed, recorded, and paid, influencing financial decisions and reporting.