The Discount on Bonds Payable Account Is

question 44

Multiple Choice

The Discount on Bonds Payable account is:

• A) A liability.
• B) A contra liability.
• C) An expense.
• D) A contra expense.
• E) A contra equity.

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Definitions:

Net Pay

The total income of an employee following the subtraction of all deductions, including taxes and retirement fund contributions.

Gross Earnings

The total amount of money earned by an individual or a company before any deductions such as taxes, benefits, or other expenses.

FICA-OASDI

FICA-OASDI is the Federal Insurance Contributions Act for Old-Age, Survivors, and Disability Insurance, a payroll tax funding Social Security and Medicare in the United States.

Taxable Earnings

The portion of an individual's or company's income that is subject to taxes by federal, state, or local governments.