Accounts Executive Question:

Explain premium on bonds payable?

Accounts Executive Interview Question
Accounts Executive Interview Question

Answer:

Premium on bonds payable (or bond premium) occurs when bonds payable are issued for an amount greater than their face or maturity amount. This is caused by the bonds having a stated interest rate that is higher than the market interest rate for similar bonds.


Previous QuestionNext Question
Define ordinary annuity?Define about operating expenses?