The Discount on Bonds Payable account is:Multiple ChoiceA liability.A contra liability.An expense.A contra expense.A contra equity.
Question
Solution 1
The Discount on Bonds Payable account is a contra liability.
Here's why:
A liability is something a company owes. Bonds payable are considered a liability because it's money the company must pay back to bondholders.
A contra account is an account that is used to reduce the value of a relat Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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