Amortizing a Bond Discount

question 158

Multiple Choice

Amortizing a bond discount:

• A) Allocates a portion of the total discount to interest expense each interest period.
• B) Increases the market value of the Bonds Payable.
• C) Decreases the Bonds Payable account.
• D) Decreases interest expense each period.
• E) Increases cash flows from the bond.

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