Which of the Following Is True of a Premium on Bonds

question 88

Multiple Choice

Which of the following is true of a Premium on Bonds Payable account?

• A)It is added to the Bonds Payable balance and shown with long-term liabilities on the balance sheet.
• B)It is added to the Bonds Payable balance and shown with owner's equity on the balance sheet.
• C)It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet.
• D)It is subtracted from the Bonds Payable balance and shown with the current liabilities on the balance sheet.

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Definitions:

Traumatic Experience

A deeply disturbing or distressing event that can have long-lasting psychological effects on an individual.

High-Strung Temperament

A characteristic of individuals who are often very anxious, tense, or easily upset over minor issues.

Post-Traumatic Growth

Positive psychological changes as a result of struggling with extremely challenging circumstances and life crises.

Psychological Changes

Alterations or developments in emotional, cognitive, or behavioral characteristics over time due to various factors or life experiences.