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Which of the following statements about discount on bonds payable is NOT true? a. discount on bonds payable decreases company's liabilities b. discount on bonds

Which of the following statements about discount on bonds payable is NOT true?

a. discount on bonds payable decreases company's liabilities

b. discount on bonds payable is a contra account to bonds payable

c. adding the discount amount to the bonds payable account yields the carrying amount of the bonds

d. subtracting the discount account from the bonds payable account yields the carrying amount of the bonds

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