Interest Expense on Bonds Exhibits the Following Attributes Except

question 167

Multiple Choice

Interest expense on bonds exhibits the following attributes except

• A)interest expense is greater than the cash payment for interest when a bond is sold at a premium and effective-interest amortization is used.
• B)interest expense is the same dollar amount for every interest payment period,if a bond was issued at a discount and straight-line amortization is used.
• C)interest expense is greater than the cash payment for interest when a bond is sold at a discount,regardless of whether straight-line or effective-interest amortization is used.
• D)interest expense equals the cash payment for interest if a bond is sold at par.
• E)interest expense becomes a larger dollar amount over time when a bond is sold at a discount and effective-interest amortization is used.

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