If a Company Uses the Effective Interest Method of Amortizing

question 37

Multiple Choice

If a company uses the effective interest method of amortizing a bond discount, the interest expense that is recognized each year will:

• A) be greater than the interest payment.
• B) increase from year to year.
• C) remain the same from year to year.
• D) be greater than the interest payment and also will increase from year to year.

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any conditioning.

Immediate Reinforcer

A reward or consequence that follows directly after a behavior, enhancing the likelihood of that behavior recurring.

Negative Reinforcer

Any unpleasant stimulus that, when removed after a response, strengthens the response, making it more likely to occur in the future.

Immediate Reinforcement

The provision of a reward directly following a desired behavior to strengthen its occurrence.