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:

Lack Of Teamwork

The absence or deficiency of collaboration and cooperative effort among a group working towards common goals.

Dangerous Environment

A situation or setting that poses potential risks to physical, psychological, or well-being safety.

Interpersonal Distance

The physical or psychological space between individuals during interactions, influenced by cultural norms, personal preferences, and the nature of the relationship.

Casual Conversations

Informal exchanges of ideas or thoughts between individuals, often characterized by spontaneity and a relaxed tone.