If there is a loss on bonds redeemed early, it is
A) reported as "Other Expense" on the statement of earnings.
B) debited to Interest Expense, as a cost of financing.
C) reported as part of earnings from operations on the statement of earnings.
D) debited directly to Retained Earnings.

Question

Quizplus · Accepted Answer

A loss on bonds redeemed early is considered an "Other Expense" and is reported separately on the statement of earnings, not as part of operating earnings or directly affecting retained earnings.

If There Is a Loss on Bonds Redeemed Early, It