If bonds have been issued at a discount, then over the life of the bonds the

carrying value of the bonds will increase.

discount will increase.

interest expense will increase, if the discount is being amortized on a straight-line basis.

carrying value of the bonds will decrease.

Treasury stock is

stock issued by the U.S. Treasury Department.

corporate stock issued by the treasurer of a company.

stock purchased by a corporation and held as an investment in its treasury.

a corporation’s own stock, which has been reacquired and held for future use.

Bond discount should be amortized to comply with

the historical cost principle.

the expense recognition principle.

conservatism.

the revenue recognition principle.

A company would not acquire treasury stock

as an asset investment.

in order to increase trading of the company's stock.

to have additional shares available to use in acquisitions of other companies.

in order to reissue shares to officers.

Answer rating: 100% (QA)

Ans The correct option is carrying value of the bonds will increase Since the bons is issued at discount during the life of the bond ... View the full answer