When the Effective Interest Method Is Used, the Amortization of the Bond

question 40

Multiple Choice

When the effective interest method is used, the amortization of the bond premium

• A) increases interest expense each period
• B) decreases interest expense each period
• C) increases interest expense in some periods and decreases interest expense in other periods
• D) has no effect on the interest expense in any period

---

Definitions:

Civil Society

The aggregate of non-governmental organizations and institutions that manifest interests and will of citizens.

Politicians

Individuals who are actively involved in politics, especially ones holding or seeking office in government.

Mass Media

Various media technologies that reach a large audience via mass communication, including newspapers, television, radio, and online platforms.

Democratic

Relating to a form of governance in which the entire population or all qualified members of a state participate, usually via electing representatives.