The Premium on Bonds Payable

question 26

Multiple Choice

The premium on bonds payable

• A)serves to reduce interest expense on the income statement.
• B)serves to increase interest expense on the income statement.
• C)is an adjunct account to notes payable.
• D)increases the cash interest payment.
• E)is a contra account to bonds payable

---

Definitions:

Financial Issues

Challenges or problems related to managing money, including income, expenses, savings, and investments.

Sleep Apnea

A sleep disorder characterized by pauses in breathing or periods of shallow breathing during sleep.

Windpipe

Also known as the trachea, a tube that connects the pharynx and larynx to the lungs, allowing the passage of air.

Respiration

The process by which living organisms exchange gases with their environment, involving the intake of oxygen and the release of carbon dioxide.