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Syifa Mutia Rahma
on Nov 13, 2024

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Discount on Bonds Payable is a contra liability account.

Contra Liability Account

An account on a company's balance sheet that decreases the balance of a liability account to reflect its net value.

Discount

A discount refers to a reduction from the usual cost of an item or service, offered to incentivize purchase or payment.

Bonds Payable

A long-term liability account that records the amounts owed by an entity to bondholders, to be repaid at a future date.

  • Examine how bond premiums and discounts affect financial disclosures.
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Laetitia SavelliNov 19, 2024
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