Which of the following is true of a discount on bonds payable? it is a contra-stockholders’ equity account it is an account that appears only in the books of the investor it increases when amortization entries are made until it reaches its maturity it decreases when amortization entries are made until its balance reaches zero at the maturity date
Which of the following is true of a discount on bonds payable? it is a contra-stockholders’ equity account it is an account that appears only in the books of the investor it increases when amortization entries are made until it reaches its maturity it decreases when amortization entries are made until its balance reaches zero at the maturity date
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following is true of a discount on bonds payable?
- it is a contra-
stockholders’ equity account
- it is an account that appears only in the books of the investor
- it increases when amortization entries are made until it reaches its maturity
- it decreases when amortization entries are made until its balance reaches zero at the maturity date
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