Sue Has Been Attending University for About a Month

question 53

Multiple Choice

Sue has been attending university for about a month. During the past week, she has been having trouble sleeping, experiencing headaches, and is having trouble concentrating, especially when she has an upcoming test. A lack of sleep can be both a cause and an effect of stress. In order to overcome insomnia Sue should consider

• A) using her bed only for sleeping, not for studying.
• B) taking a nap when she feels tired.
• C) exercising just before going to bed to release excess stress.
• D) sleeping in on weekends.

---

Definitions:

Bond Premium Amortization

The gradual expense recognition over time of the premium paid above the par value for a bond.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge against earnings.

Interest Rate

The Interest Rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Straight-Line Amortization

A method of calculating the depreciation of an asset or the repayment of a loan in equal installments over a specified period of time.