Which of the following is false? The discount on bonds payable is
A)amortized over the life of the bond.
B)deducted from bonds payable.
C)a contra account to bonds payable.
D)reported in liabilities section of the balance sheet.
E)an adjunct account to bonds payable.

Question

Quizplus · Accepted Answer

The discount on bonds payable is not an adjunct account to bonds payable. Rather, it is a contra account to bonds payable, which reduces the overall amount of bonds payable that is reported on the balance sheet.

Which of the Following Is False? the Discount on Bonds