Examlex
Which of the following accounting ratios considers the importance of cash flows relating to required interest payments?
Amortization
Amortization is the process of spreading out a loan into a series of fixed payments over time, or gradually writting off the initial cost of an intangible asset.
Discount on Bonds Payable
The difference when bonds are issued for less than their face value, representing an extra cost of borrowing to the issuer.
Straight-Line Method
A method of calculating depreciation or amortization by evenly spreading the cost of an asset over its useful life.
Amortization
The process of spreading the cost of an intangible asset over its useful life.
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