A loan discount is: Multiple Choice a loan used to purchase a bond at a discount, based on a discounted interest rate on a loạn. the same as a bond discount. the interest amount that is subtracted from the loan principal (and effectively prepaid) when a loan is obtained on a discount basis. the interest amount that is paid along with the loan principal when a loan obtained on a straight basis is paid off on the maturity date.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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hello, I need help please

A loan discount is:
Multiple Choice
a loan used to purchase a bond at a discount, based on a discounted interest rate on a loan.
the same as a bond discount.
the interest amount that is subtracted from the loan principal (and effectively prepaid) when a loan is obtained on a discount basis.
the interest amount that is paid along with the loan principal when a loan obtained on a straight basis is paid off on the maturity date.
Transcribed Image Text:A loan discount is: Multiple Choice a loan used to purchase a bond at a discount, based on a discounted interest rate on a loan. the same as a bond discount. the interest amount that is subtracted from the loan principal (and effectively prepaid) when a loan is obtained on a discount basis. the interest amount that is paid along with the loan principal when a loan obtained on a straight basis is paid off on the maturity date.
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