The Discount on Bonds Payable

question 210

Multiple Choice

The discount on bonds payable:

• A) decreases interest expense on the income statement.
• B) increases interest expense on the income statement.
• C) decreases the amount of cash paid to bondholders over the stated rate of interest.
• D) increases the amount of cash paid to bondholders over the stated rate of interest.

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Definitions:

Theory Y

A management theory developed by Douglas McGregor that assumes employees are self-motivated, seek responsibility, and want to make creative contributions to the workplace.

Self-fulfilling Prophecies

Expectations about a subject that cause the subject to act in ways that confirm the expectations.

Adult Personality

The culmination of personality development over an individual's lifetime, showcasing stable psychological traits.

Unity of Direction

A principle that all members of an organization should work towards the same objectives in a coordinated manner.