The Use of the Effective Interest Method to Amortize a Discount

question 74

Multiple Choice

The use of the effective interest method to amortize a discount associated with the acquisition of an investment in bonds results in

• A) the recognition of more interest income over the life of the investment than would result from the use of the straight-line method.
• B) the recognition of a constant amount of interest income each period.
• C) the recognition of less interest income over the life of the investment than would result from the use of the straight-line method.
• D) the recognition of a varying amount of interest income each period.

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Definitions:

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a handbook used by healthcare professionals as the authoritative guide to the diagnosis of mental disorders.

Autism Spectrum Disorder

A developmental disorder characterized by difficulties in social interaction and communication, and by restricted or repetitive patterns of thought and behavior.

Asperger's Syndrome

A developmental disorder affecting ability to effectively socialize and communicate.

ADHD

Attention Deficit Hyperactivity Disorder, a neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsivity.