The interest expense recorded on an interest payment date is increased
A) by the amortization of premium on bonds payable.
B) by the amortization of discount on bonds payable.
C) only if the bonds were sold at face value.
D) only if the market rate of interest is less than the stated rate of interest on that date.

Question

Quizplus · Accepted Answer

The interest expense recorded on an interest payment date is increased by the amortization of discount on bonds payable. This is because the discount represents an additional cost of borrowing that is recognized over the life of the bond, effectively increasing the interest expense over time.

The Interest Expense Recorded on an Interest Payment Date Is