Which of the Following Is(are) the Primary Effect(s) of Amortizing

question 71

Multiple Choice

Which of the following is(are) the primary effect(s) of amortizing a discount on notes receivable?

• A) It increases the interest revenue so that the corporation's effective rate of return is brought up to the higher market rate.
• B) It reduces the discount and increases the carrying value of the note receivable until the carrying value is equal to the face value of the note.
• C) Both A and B are the primary effects of amortizing a discount.
• D) None of the above are accurate.

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Definitions:

Adaptors

Nonverbal behaviors that satisfy a personal need and help a person adapt or respond to the immediate situation.

Illustrators

Nonverbal gestures that accompany speech, often used to emphasize or clarify verbal messages, such as pointing or using hand movements.

Affect Displays

Nonverbal behaviors that communicate emotions.

Cognitive

Pertaining to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, and judging.