Which of the Following Is True of a Premium on Bonds

question 94

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 stockholders' 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:

Kidneys

Organs in the human body that filter waste products from the blood to be excreted as urine.

Urethra

The tube that carries urine from the bladder to be expelled outside the body.

Trigone

A triangular area located in the urinary bladder, situated between the openings of the ureters and the urethra, which remains stable while the rest of the bladder expands or contracts.

Bladder

A hollow organ in the lower abdomen that stores urine before it is expelled from the body.