Which of the Following Is TRUE of the Premium on Bonds

question 1

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.

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Definitions:

Mainstream Economics

A body of economic thought that represents conventional, widely accepted theories and practices within the field, typically focusing on market structures and efficiency.

Efficiency

The ability to achieve maximum productivity with minimum wasted effort or expense, often a key goal in business operations and economic theory.

Equity

The concept of fairness or justice in the way people are treated, or the value of shares owned in a company.

Voice

In the context of labor relations, voice refers to the ability of workers to express their opinions, grievances, or suggestions, typically through a union or other representative body.