How Does the Amortization of the Discount on a Note

question 27

Multiple Choice

How does the amortization of the discount on a note payable affect a company's financial statements?

• A)Decreases interest expense and decreases liabilities
• B)Decreases interest expense and increases liabilities
• C)Increases interest expense and decreases liabilities
• D)Increases interest expense and increases liabilities

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Definitions:

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