Bond discount should be amortized to comply with
A)the historical cost principle.
B)the expense recognition principle.
C)the revenue recognition principle.
D)conservatism.

Question

Quizplus · Accepted Answer

The expense recognition principle requires that expenses be matched with revenues in the period in which they are incurred. Amortizing bond discount aligns the interest expense with the periods benefiting from the bond proceeds.

Bond Discount Should Be Amortized to Comply with