Which of the Following Is True of a Premium on Bonds

question 51

Multiple Choice

Which of the following is true of a premium on bonds payable?

• A) It is a contra-stockholders' equity account.
• B) It is an account that appears only on the books of the investor.
• C) It increases when amortization entries are made until it reaches its maturity value.
• D) It decreases when amortization entries are made until its balance reaches zero at the maturity date.

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Definitions:

Write Function

A standard library function in many programming languages used to write data to a file or an output stream.

Pointers

Variables used to store the addresses of other variables or memory locations, enabling direct memory manipulation and array management.

Variables

Entities in programming that store data which can change during program execution.