Question: When a CPA observes that the recorded interest expense seems to be excessive in relation to the balance in the bonds payable account, the CPA

When a CPA observes that the recorded interest expense seems to be excessive in relation to the balance in the bonds payable account, the CPA might suspect that

a. Discount on bonds payable is understated.

b. Bonds payable are understated.

c. Bonds payable are overstated.

d. Premium on bonds payable is overstated.

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