Which of the Following Is True Regarding Accounting for Amortization

question 199

Multiple Choice

Which of the following is true regarding accounting for amortization of bond discount and premium?

• A) GAAP is required to use the straight-line method.
• B) IFRS is required to use the effective-interest method.
• C) GAAP must use the effective-interest method, but IFRS may use either the effective-interest method or the straight-line method.
• D) Both IFRS and GAAP must use the effective-interest method.

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Definitions:

Chronically

Refers to something happening in a persistent and recurring manner over a long period.

Taste Buds

Sensory organs located on the tongue and other parts of the mouth that are responsible for detecting the five elements of taste perception: sweet, salty, sour, bitter, and umami.

Genetic Differences

Variations in the DNA sequences among individuals, which contribute to the unique physical and behavioral traits of each person.

Taste Buds

Sensory organs on the tongue that are responsible for perceiving different tastes.