When the bond liability reported on the statement of financial position increases each year, this indicates that the bond was:
A) issued at a discount.
B) issued at face value.
C) issued at a premium.
D) issued at net realizable value.

Question

Quizplus · Accepted Answer

When a bond is issued at a discount, the liability increases each year as the discount is amortized, bringing the carrying amount of the bond closer to its face value by maturity.

When the Bond Liability Reported on the Statement of Financial