Discount on Bonds Video Lessons

Video Thumbnail

Concept

Problem: Which of the following statements are not correct regarding bonds sold at a discount? A.The carrying amount gets larger each year. B.The Discount on Bonds Payable account gets smaller each year. C.At maturity, the face value and carrying value will be equal. D.The balance of Bonds Payable account will get larger each year. E.At maturity, the balance of the Discount on Bonds Payable will be zero.

FREE Expert Solution
Problem Details

Which of the following statements are not correct regarding bonds sold at a discount?

A.The carrying amount gets larger each year.

B.The Discount on Bonds Payable account gets smaller each year.

C.At maturity, the face value and carrying value will be equal.

D.The balance of Bonds Payable account will get larger each year.

E.At maturity, the balance of the Discount on Bonds Payable will be zero.

Frequently Asked Questions

What scientific concept do you need to know in order to solve this problem?

Our tutors have indicated that to solve this problem you will need to apply the Discount on Bonds concept. You can view video lessons to learn Discount on Bonds. Or if you need more Discount on Bonds practice, you can also practice Discount on Bonds practice problems.

What is the difficulty of this problem?

Our tutors rated the difficulty ofWhich of the following statements are not correct regarding ...as high difficulty.