Which One of the Following Statements Regarding Amortization of Discounts

question 90

Multiple Choice

Which one of the following statements regarding amortization of discounts and premiums is not true?

• A)Under straight-line amortization,when a bond is sold at a premium,the annual premium amortization is the total premium divided by the number of years until bond maturity.
• B)When a bond is sold at a discount,interest expense recorded using the effective-interest method is less than the interest paid on the bond.
• C)The effective-interest method of amortization is considered to be conceptually superior to straight-line amortization.
• D)When a bond discount is amortized using the effective-interest method,the promised interest payment is less than the interest expense,so the bond liability will increase as a result of the contra-liability account decreasing.

---

Definitions:

Taste Aversions

A learned response to eating spoiled or toxic food, where the mere sight or smell of the food can cause nausea or aversion.

Aversive Food

Food items that are typically avoided due to unpleasant taste, smell, or associations, potentially leading to negative physiological responses.

Nauseous Reaction

A nauseous reaction is a physiological response to various stimuli, resulting in the urge to vomit.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without prior learning or conditioning.