Premium on Bonds Payable is considered to be an additional Interest Expense of the company that issues the bond.

Name: Premium on Bonds Payable is considered to be an additional Interest Expense of the company that issues the bond.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Premium on Bonds Payable is not an additional interest expense; it is a liability account that represents the amount by which the bond's issue price exceeds its face value. It is amortized over the life of the bond, reducing interest expense.

Premium on Bonds Payable Is Considered to Be an Additional