Which of the Following Statements Is Characteristic of Amortization and Bonds

question 24

Multiple Choice

Which of the following statements is characteristic of amortization and bonds?

• A) Amortization of the premium causes the premium on bonds payable account to increase.
• B) Amortization of the premium causes the amount of interest expense to increase.
• C) Cash interest payments on bonds equal interest expense on the income statement when there is amortization of bond premium.
• D) Amortization of a premium continues over the life of the bond until the balance in the account is reduced to zero.

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