Amortizing a bond discount:

A) Allocates a portion of the total discount to interest expense each interest period.
B) Increases the market value of the Bonds Payable.
C) Decreases the Bonds Payable account.
D) Decreases interest expense each period.
E) Increases cash flows from the bond.

Amortizing

The process of spreading out a loan into a series of fixed payments over time.

Bond Discount

The difference when a bond is sold for less than its face value or par value.

Interest Expense

The cost incurred by an entity for borrowed funds, including the expense on bonds, loans, convertible debt, and lines of credit.