Asked by Mariela Nieto on Jul 07, 2024
Verified
Gains and losses on the redemption of bonds are reported as other income (loss) on the income statement.
Redemption Of Bonds
Redemption of bonds is the process by which a bond issuer repays the principal amount of the bond to the bondholders at maturity.
Income Statement
A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.
- Familiarize yourself with the treatment of bond redemption within accounting and the associated outcomes on gains and losses resulting from redemption.
Verified Answer
TL
Terry LewisJul 10, 2024
Final Answer :
True
Explanation :
When a bond is redeemed, any gains or losses are reported as other income (loss) on the income statement, rather than being included as part of operating income or expenses.
Learning Objectives
- Familiarize yourself with the treatment of bond redemption within accounting and the associated outcomes on gains and losses resulting from redemption.