Which of the Following Statements Regarding Bonds Payable Net of a Discount

Multiple Choice

Which of the following statements regarding bonds payable net of a discount or premium is NOT true?

A) If a company records a discount or premium with the bonds payable in a single account called Bonds Payable, Net, it can use the simplified effective interest method of amortization.
B) When bonds payable are accounted for net of a discount, the initial amount recorded in the Bonds Payable, Net account is the issue price of the bond.
C) When bonds are accounted for net of a premium, the balance in the Bonds Payable, Net account will increase as the bond approaches the maturity date.
D) If a company issued bonds at their face value, the balance of Bonds Payable, Net account will always be