Which of the Following Is True of a Discount on Bonds

question 86

Multiple Choice

Which of the following is true of a Discount 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 subtracted from the Bonds Payable balance and shown with the current liabilities on the balance sheet.
• C)It is added to the Bonds Payable balance and shown with owner's equity on the balance sheet.
• D)It is subtracted from the Bonds Payable balance and shown with long-term liabilities on the balance sheet.

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Definitions:

Water

A clear, flavorless, scentless, and almost colorless substance that forms the primary part of the Earth's hydrosphere and the liquids within most living beings.

Hydrobromic Acid

A strong acid formed by dissolving the diatomic molecule hydrogen bromide (HBr) in water.

Strong Acid

An acid that completely dissociates into its ions in water, releasing all of its hydrogen atoms as hydrogen ions.