Premium on debentures payable is considered to be additional interest expense of the company that issues the debenture.

Name: Premium on debentures payable is considered to be additional interest expense of the company that issues the debenture.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Premium on debentures payable is not considered additional interest expense; it is an additional amount paid over the face value of the debenture, often treated as a capital loss or amortized over the life of the debenture.

Premium on Debentures Payable Is Considered to Be Additional Interest