In Practice, Under the Cost/amortized Cost Method and ASPE, Any

question 79

Multiple Choice

In practice, under the cost/amortized cost method and ASPE, any discount or premium on a bond investment is

• A) required to be recognized and reported separately, and amortized using the effective-interest rate method.
• B) not recognized or reported separately; amortized using either the straight-line or effective-interest method.
• C) not recognized or reported separately; amortized using the effective-interest method.
• D) required to be recognized and reported separately, and amortized using the straight-line method.

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Definitions:

Amphibians

A class of cold-blooded vertebrates that includes frogs, toads, salamanders, and newts, characterized by a life cycle that usually involves a transition from water to land.

Homo Sapiens

Species name of modern humans.

195,000 Years

An estimate of the time period since the emergence of anatomically modern humans.

25,000 Years

An approximate time period which can reference significant dates in geologic, archaeological, or historical contexts.