The Result of Using the Effective Interest Method of Amortization

question 138

Multiple Choice

The result of using the effective interest method of amortization for bond discounts is that the

• A)interest expense for each amortization period is constant.
• B)effective interest rate for each amortization period is constant.
• C)amount of interest expense decreases each period.
• D)cash interest payment is greater than the interest expense.

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Definitions:

Needs

Basic or inherent desires that drive individuals to take action to satisfy them.

Self-concepts

The comprehensive view individuals have of themselves, shaped by personal beliefs, attitudes, and experiences.

Maslow Hierarchy

Maslow's hierarchy is a psychological theory proposed by Abraham Maslow, outlining a five-tier model of human needs, from basic physiological needs to self-actualization, influencing motivation and behavior.

Safety

Being safeguarded against or not prone to danger, risk, or injury.