The Use of the Effective Interest Method to Amortize a Discount

question 65

Multiple Choice

The use of the effective interest method to amortize a discount associated with the acquisition of an investment in bonds results in

• A)the recognition of more interest revenue over the life of the investment than would result from the use of the straight-line method
• B)the recognition of a constant amount of interest revenue each period
• C)the recognition of less interest revenue over the life of the investment than would result from the use of the straight-line method
• D)the recognition of a varying amount of interest revenue each period

---

Definitions:

Cross-Cultural Research

An empirical investigation of human behavior that compares cultural groups to identify similarities or differences.

Human Development

The study of how people grow and change physically, mentally, emotionally, and socially throughout their life.

Genetic Differences

Variations in the DNA sequences between individuals within a population.

Gender Differences

Variations in characteristics, behaviors, physical development, and roles traditionally associated with males and females in society.