Under the Effective-Interest Method of Amortization, the Amount of Discount

question 15

Multiple Choice

Under the effective-interest method of amortization, the amount of discount amortized each interest period is equal to the:

• A)total amount of interest expense, divided by the number of interest payments to be paid.
• B)total discount, divided by the number of interest payments to be made.
• C)amount of interest expense plus the cash paid.
• D)amount of interest expense less the cash paid.

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