Which of the Following Statements About Discount on Bonds Payable

question 184

Multiple Choice

Which of the following statements about discount on bonds payable is NOT true?

• A)Discount on bonds payable is a contra account to bonds payable.
• B)Subtracting the discount account from the bonds payable account yields the carrying amount of the bonds.
• C)Adding the discount account to the bonds payable account yields the carrying amount of the bonds.
• D)Discount on bonds payable decreases the company's liabilities.

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