The Result of Using the Effective Interest Method of Amortization

question 113

Multiple Choice

The result of using the effective interest method of amortization of discount on bonds is that the

• A)interest expense for each amortization period is constant.
• B)effective interest rate for each amortization period is constant.
• C)amount of interest expense decreases each period.
• D)cash interest payment is greater than the interest expense.

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Definitions:

Administrative Recordkeeping

The systematic management of records and documents by organizations or governments for the purpose of ensuring accuracy, efficiency, and accountability.

Mycenaean Palace

The administrative and ceremonial centers of Mycenaean Greece, characterized by their grand architecture, including megarons and elaborate frescoes.

Megaron

The main hall or central room of an ancient Greek palace or large house, characterized by its rectangular shape and fronted by an open, two-columned porch.

Function

The intended use or purpose of an object, building, or space.