When the Effective-Interest Method Is Used to Amortize Bond Premium

question 50

Multiple Choice

When the effective-interest method is used to amortize bond premium or discount, the periodic amortization will

• A) increase if the bonds were issued at a discount.
• B) decrease if the bonds were issued at a premium.
• C) increase if the bonds were issued at a premium.
• D) increase if the bonds were issued at either a discount or a premium.

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Definitions:

Adhocracy

A selectively decentralized form of organization that emphasizes the support staff and mutual adjustment among people.

Adhocracy

An organizational structure that is flexible, non-hierarchical, and adaptable, often employed to spur innovation and adapt quickly to changes.

Centralization

The process of concentrating control and decision-making authority within a centralized group or location, often at the top levels of organizational hierarchy.

Supervision

The act of overseeing or managing others' work to ensure it meets required standards and objectives.