When Using the Effective-Interest Amortization Method,the Amount of the Interest

question 151

True/False

When using the effective-interest amortization method,the amount of the interest expense is calculated using the face value of the bonds and the market interest rate.

---

Definitions:

Denitrification

A microbial process occurring mostly in soil and aquatic environments, where nitrate is reduced and ultimately produces molecular nitrogen, removing it from the ecosystem.

Hydrologic Cycle

The water cycle, which includes evaporation, precipitation, and flow to the ocean; supplies terrestrial organisms with a continual supply of fresh water.

Nitrification

The conversion of ammonia (NH3) to nitrate (NO3-) by certain bacteria (nitrifying bacteria) in the soil; part of the nitrogen cycle.

Transpiration

is the process by which moisture is carried through plants from roots to small pores on the underside of leaves, where it changes to vapor and is released to the atmosphere.