The Balance in the Bonds Payable Account Is a Credit

question 64

True/False

The balance in the Bonds Payable account is a credit of $72,000. The balance in the Discount on Bonds Payable is a debit of $3,500. The balance sheet will report the bond balance as $75,500.

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Definitions:

State Governments

The governing bodies of individual states within a federal system, responsible for local legislation and administration.

American History

The study and exploration of the events, people, cultures, and political movements that have shaped the United States over time.

Corporate Veil

The corporate veil is the legal concept separating the actions of a corporation from its shareholders, protecting them from personal liability.

Shareholder

An owner of a corporation, who has no inherent right to manage the corporation but has liability limited to his capital contribution. Also called stockholder.