Which of the following is true regarding the reporting of bonds in the financial

Question

Which of the following is true regarding the reporting of bonds in the financial statements?
A bond will appear in the statements at its face amount with no indication of whether it sold at a premium or discount.
A bond will appear on the balance sheet at its face amount; its unamortized premium or discount will appear on the income statement.
The proceeds from the sale of a bond will appear as revenue on the income statement.
The amortization of a discount will appear as part of interest expense on the income stateme

Explanation / Answer

Answer is 4

The amortization of a discount will appear as part of interest expense on the income stateme

here interest expense include the payment of coupon and a portion of discount to be amortized

interest expense = coupon payment + discount amortized using straight line or effective interest method

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