With the Effective Interest Method of Amortization, the Amortization of Bond

question 40

Multiple Choice

With the effective interest method of amortization, the amortization of bond discount results in a(n)

• A) increase in interest expense.
• B) decrease of stockholders' equity.
• C) increase in stockholders' equity.
• D) decrease in interest expense.

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Definitions:

Passive Voice

A grammatical voice where the subject of the sentence is acted upon by the verb, typically making the action's doer less prominent.

Placing Blame

The act of attributing fault or responsibility for a problem or wrongdoing to someone or something.

Coherence

The logical and orderly presentation of ideas in written or spoken form, ensuring that all parts of the communication are connected and flow smoothly.

Active Voice

A grammatical voice in which the subject performs the action stated by the verb.