Which Statement Is True

question 129

Multiple Choice

Which statement is true?

• A)The carrying amount of the bonds will decrease each year if the bonds were issued at a discount.
• B)The carrying amount of the bonds will decrease each year if the bonds were issued at a premium.
• C)Total interest expense will increase each year if the bonds are issued at a discount and the straight-line method of amortization is used.
• D)Total interest expense will increase each year if the bonds are issued at a premium and the effective interest method of amortization is used.

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Definitions:

Ultimate Rigidity

The maximum stiffness of a material or structure, representing its resistance to deformation under load.

Ultimate Strength

The maximum stress or force that a material can withstand while being stretched or pulled before failing or breaking.

Huck Fasteners

A brand and type of heavy-duty mechanical fasteners commonly used in the automotive and aerospace industries for applications requiring high strength and vibration resistance.

SAE Grade Rating

A system developed by the Society of Automotive Engineers (SAE) to classify oils and lubricants based on their viscosity characteristics.