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Explain,providing an example,the 'effective-interest method' used to amortise debenture discount and debenture premium accounts.What is the implication of using this method for the balance of the net liability throughout the debenture term?
Probability
The quantification of the probability of an event happening, represented by a numerical value ranging from 0 to 1.
Central Limit Theorem
A statistical theory stating that the distribution of sample means approximates a normal distribution as the sample size becomes sufficiently large.
Sample Mean
The average of a sample set of numbers, calculated by adding up all the numbers and dividing by the count of numbers in the set.
Sample Mean
The average value of a sample set of numbers.
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