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    chuckeeebeee Posts: 10, Reputation: 1
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    May 10, 2007, 12:38 PM
    Bonds issued at a Discount
    Question: When bonds are issued at a discount, the recorded amount of bond interest expense for a given time bears what relationship to the amount of bond interest payable for the same time?

    a. The recorded amount of bond interest expense is the same as the amount of bond interest payable

    b. The recorded amount of bond interest expense is lower than the amount of bond interest payable

    c. The recorded amount of bond interest expense is higher than the amount of bond interest payable

    d. There is absolutely no relationship between the amount of recorded bond interest expense and the amount of bond interest payable

    e. None of the above

    I could use some help on this one. Thank you so much!

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