Generally Accepted Accounting Principles Require That Interest Expense Be Measured

question 186

True/False

Generally accepted accounting principles require that interest expense be measured using the effective-interest amortization method,unless the straight-line amounts are similar.

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Definitions:

Security

A financial instrument representing an ownership position, a debt relationship, or rights to ownership as represented by an option.

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.

Sarbanes-Oxley Act

U.S. legislation enacted to protect investors from fraudulent financial reporting by corporations, enhancing corporate accountability.

SEC

The Securities and Exchange Commission, an agency responsible for regulating and enforcing federal securities laws in the United States.