Using the Straight-Line Amortization Method, If Bonds Are Sold at a Discount

question 34

Multiple Choice

Using the straight-line amortization method, if bonds are sold at a discount:

• A) interest expense in the beginning of the bond's life will be less than interest expense at the end of the bond's life.
• B) interest expense in the beginning of the bond's life will be more than interest expense at the end of the bond's life.
• C) unamortized discount is subtracted from the face value of the face value of the bond to determine its carrying value.
• D) unamortized discount is added to the face value of the bond to determine its carrying value.

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Definitions:

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, and environment.

Higher-Brain

A concept focusing on the critical functions of the cerebral cortex, especially in discussions about brain death, consciousness, and criteria for determining death.

Personhood

The quality or condition of being considered a person, often discussed in moral, legal, and philosophical contexts, affecting rights and responsibilities.

Rachels

Likely refers to James Rachels, an American philosopher who specialized in ethics and created influential arguments concerning moral objectivity and euthanasia.