Which of the Following Statements About Discount on Bonds Payable

Multiple Choice

Which of the following statements about discount on bonds payable is NOT true?

A) Discount on bonds payable is a contra account to bonds payable.
B) Subtracting the discount account from the bonds payable account yields the carrying amount of the bonds.
C) Adding the discount account to the bonds payable account yields the carrying amount of the bonds.
D) Discount on bonds payable decreases the company's liabilities.