Which of the Following Statements Is True Regarding the Straight-Line

question 86

Multiple Choice

Which of the following statements is true regarding the straight-line method of amortizing discounts and premiums on bonds?

• A)It assigns variable amounts of interest over the term of the liability.
• B)It uses compound interest principles.
• C)It assigns the same amount of interest to each interest period over the life of the bond.
• D)It accurately reports the amount of interest expense incurred during each interest period.