Which of the Following Is True of the Premium on Bonds

question 83

Multiple Choice

Which of the following is true of the Premium on Bonds Payable account? (The bonds are due in ten years.)

• 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.

---

Definitions:

Strategic Knowledge

The understanding of when and why to use particular strategies in problem-solving or learning.

School Year

The academic period, usually lasting from late summer or early autumn to late spring, during which instruction is provided to students.

Strategic Knowledge

Understanding and awareness of one's own thinking and learning strategies, and the ability to apply these strategies effectively.

Recall Task

A cognitive process involving the ability to retrieve information or experiences from memory.