The balance in Discount on Bonds Payable that is applicable to bonds due in 2015 would be reported on the balance sheet in the section entitled
A) current liabilities
B) long-term liabilities
C) current assets
D) intangible assets

Question

Quizplus · Accepted Answer

Discount on Bonds Payable is a contra account to the Bonds Payable account and is reported as a long-term liability on the balance sheet. Since the bonds are due in 2015, it would be classified as a long-term liability.

The Balance in Discount on Bonds Payable That Is Applicable