[solas_heaven]

I am having trouble with the following question. I think the answer is: d. any of these. However, I am not sure. Could you clarify?

5. Theoretically, the costs of issuing bonds could be
a. expensed when incurred.
b. reported as a reduction of the bond liability.
c. debited to a deferred charge account and amortized over the life of the bonds.
d. any of these.

[Just Looking]

The costs associated with issuing bonds should be recorded as a deferred charge in the long term asset section of the balance sheet under the heading of Other Assets. Over the life of the bonds you will need to amortize the costs. The concept is to match the cost to the accounting periods that are benefiting from the bonds having been issued.