Final answer:
Warrants associated with bonds are considered equity instruments and should be accounted for separately, impacting the accounting of the bond at issuance.
Step-by-step explanation:
In regard to bonds sold with detachable warrants, it is important to note that warrants are typically viewed as equity instruments because they give the holder the right to purchase the company's stock at a specified price before expiry. Hence, among the given options, (a) Warrants are considered equity instruments is true. Furthermore, because warrants can be separated and traded independently of the bond, they are accounted for separately when the bond is issued. Therefore, option (e) Warrants are not separately accounted for is incorrect. The accounting for the bond itself is not affected by the presence of the warrants; thus, option (c) Warrants have no impact on the accounting for the bonds is also incorrect as the initial bond and the warrant's fair value must be allocated at issuance.