Which of the Following Is True of the Premium on Bonds

question 151

Multiple Choice

Which of the following is true of the 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.

---

Definitions:

Homophily

The tendency for individuals to associate and bond with similar others, often summarized as "like attracts like."

Structured Compatibility

The degree to which systems, processes, or entities are designed to match or work together in a harmonious manner.

Aronson

A social psychologist known for his work on social influence, the theory of cognitive dissonance, and the Jigsaw Classroom as a method to reduce racial prejudice.

Initiation

The process or ceremony that marks the acceptance of an individual into a group or society, often involving specific rituals or tasks.