If Bonds Have Been Issued at a Discount, Then Over

question 150

Multiple Choice

If bonds have been issued at a discount, then over the life of the bonds the

• A)carrying value of the bonds will decrease.
• B)carrying value of the bonds will increase.
• C)interest expense will increase if the discount is being amortized on a straight-line basis.
• D)unamortized discount will increase.

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Definitions:

Surface Waves

Seismic waves that travel on Earth’s surface.

Subduction Zone

A region of the Earth's crust where one tectonic plate moves under another, often leading to volcanic activity and earthquakes.

Continental Crust

The thick, buoyant part of the earth's crust that forms the continents and continental shelves, distinguished from the denser oceanic crust.

Continental Collision

A geological process where two continental plates collide, leading to the formation of mountains and other geological structures.