209

question 85

Multiple Choice

209. Which of the following statements regarding the effective-interest method of accounting for bonds characteristics is false?

• A) IFRS prefers the use of the effective-interest method.
• B) The amount of periodic interest expense decreases over the life of a discounted bond issue when the effective-interest method is used.
• C) Over the life of the bonds, the carrying value increases for discounted bonds when using the effective-interest method.
• D) The effective-interest method applies a constant percentage to the bond carrying value to compute interest expense.

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Definitions:

Sales Messages

Marketing communications designed to stimulate immediate buying behavior among prospective customers.

Effective Technique

A method or approach that has been proven to achieve desired results or objectives efficiently.

Emotional Concerns

Issues or aspects related to an individual's feelings, emotions, and psychological well-being.

Selling Points

Key features or benefits of a product or service that are emphasized to persuade potential buyers.