When Making the Adjustment for Accrued Interest,the Bond Premium Account

question 106

Multiple Choice

When making the adjustment for accrued interest,the Bond Premium account was not taken into account.This error would cause:

• A)the period end assets to be overstated.
• B)the period end liabilities to be understated.
• C)the period's net income to be understated.
• D)None of the above are correct.

---

Definitions:

Polar Solvents

Solvents containing molecules with a partial electrical charge, enabling them to dissolve polar substances.

Benzene

A colorless, volatile, and highly flammable liquid hydrocarbon with a distinctive sweet smell, used as a base material in the chemical industry and derived from petroleum.

Toluene

A colorless, water-insoluble liquid hydrocarbon with a sweet smell, used as an industrial solvent and in the production of chemicals.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.