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Which statement is true regarding file systems?
Effective-Interest Method
A way of calculating the amortized cost of a bond and the amount of interest expense over its life, reflecting the constant rate of interest over the period.
Bond Discount Amortization
The process of gradually writing off the discount on a bond over the life of the bond, reflecting the increase in its value as it nears maturity.
Carrying Value
The net amount at which an asset is valued on the balance sheet, taking into account depreciation, amortization, and impairment costs.
Effective-Interest Method
A method of amortizing the discount or premium on bonds payable over the life of the bonds, providing a periodic interest expense that reflects a constant rate of interest.
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