IIA Exam IIA-CFSA Topic 7 Question 27 Discussion

Actual exam question for IIA's IIA-CFSA exam

Question #: 27
Topic #: 7

The ''discount on bonds payable'' account is __________when a bound sells at discount. The ''premium on bond payable'' is ____________ when a bond sells a premium.

ACredited, debited

BDebited, credited

CAccrued, debited

DDeferred, debit

Show Suggested Answer

Suggested Answer: C

by Joanna at Dec 29, 2022, 01:01 AM

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Thersa

15 days ago

I'm not sure about that, I think it might be B) Debited, credited. Can someone explain why the premium on bond payable would be credited?

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Toi

15 days ago

Hmm, this seems straightforward. I'm going with B) Debited, credited. Gotta love those bond accounting basics!

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I think the correct answer is B) Debited, credited. The discount on bonds payable account is debited when a bond sells at a discount, and the premium on bonds payable account is credited when a bond sells at a premium.

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Micaela

17 days ago

I agree with Timothy, because when a bond sells at a discount, the discount on bonds payable account is credited and the premium on bond payable is debited.

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Timothy

26 days ago

I think the correct answer is A) Credited, debited.

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IIA Exam IIA-CFSA Topic 7 Question 27 Discussion

Contribute your Thoughts:

Thersa

Toi

Doretha

Micaela

Timothy