Multiple Choice
Which of the following is TRUE of a premium on bonds payable?
A) A premium on bonds payable is added to the bonds payable balance and shown with long-term liabilities on the balance sheet.
B) A premium on bonds payable is added to the bonds payable balance and shown with owner's equity on the balance sheet.
C) A premium on bonds payable is subtracted from the bonds payable balance and shown with long-term liabilities on the balance sheet.
D) A premium on bonds payable is subtracted from the bonds payable balance and shown with the current liabilities on the balance sheet.
Correct Answer:
Verified
Correct Answer:
Verified
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