45 Which of the following statements correctly describes the accounting for bond

Question

45 Which of the following statements correctly describes the accounting for bonds that were issued at a premium? O The interest expense over the life of the bonds increases as the bonds mature when the effective interest method is used O The book value of the bond liability increases when interest payments are made on the due dates when the effective interest method of amortization is used O The interest expense over the life of the bond is less than the total cash interest payments The amortization of the premium on bonds payable account decreases as the bonds mature when the effective interest method is used.

Explanation / Answer

The interest expense over the life of the bonds is less than the total interest cash payments Option 3 is correct

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.