When a bond payable is issued at a discount,subsequent amortization of the discount doesn't do which of the following?
A)Increase interest expense.
B)Increase the book value of the bonds.
C)Increase in amount amortized for each year the bond gets older when the effective-interest method is used.
D)Increase the amount reported as a cash flow from operating activities.

Question

Quizplus · Accepted Answer

The amount reported as a cash flow is the cash payment which is unaffected by amortization of the discount.

When a Bond Payable Is Issued at a Discount,subsequent Amortization