Wednesday, March 13, 2013

Accounting Midterm Exam ACG-2011: Question 90

Amortizing a bond discount:
correctAllocates a portion of the total discount to interest expense each interest period.
Decreases the Bonds Payable account.
Decreases interest expense each period.
Increases cash flows from the bond.
Increases the market value of the Bonds Payable.

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