Either the Straight-Line Method or the Effective-Interest Method of Amortization

question 183

Multiple Choice

Either the straight-line method or the effective-interest method of amortization will always result in

• A) the same amount of interest expense being recognized over the term of the bonds.
• B) the same amount of interest expense being recognized each year.
• C) more interest expense being recognized than if premium or discounts were not amortized.
• D) the same carrying value each year during the term of the bonds.

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Definitions:

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