Which Statement Is True

question 129

Multiple Choice

Which statement is true?

• A)The carrying amount of the bonds will decrease each year if the bonds were issued at a discount.
• B)The carrying amount of the bonds will decrease each year if the bonds were issued at a premium.
• C)Total interest expense will increase each year if the bonds are issued at a discount and the straight-line method of amortization is used.
• D)Total interest expense will increase each year if the bonds are issued at a premium and the effective interest method of amortization is used.

---

Definitions:

Celsius

A scale of temperature in which water freezes at 0 degrees and boils at 100 degrees under standard conditions.

Unobtrusive Measures

Methods of collecting data that do not interfere with the subjects being studied.

Reactivity

Reactivity is the tendency of people to alter their performance or behavior due to the awareness that they are being observed.

Reactivity

The phenomenon where subjects alter their behavior due to their awareness of being observed.