Which Statement Is True

question 70

Multiple Choice

Which statement is true?

• A)The carrying amount of the bonds will increase each year if the bonds were issued at a discount.
• B)The carrying amount of the bonds will increase 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.

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Definitions:

Sympathetic Nervous System

A part of the autonomic nervous system that activates the body's fight-or-flight response during perceived threats.

Concealed Information Test

The Concealed Information Test is a psychological assessment tool used to determine if a person has knowledge of information that they are trying to conceal.

Parasympathetic Arousal

The activation of the parasympathetic nervous system, leading to a state of relaxation and recovery after stress or danger.

Two-Factor Theory

A motivation theory, proposed by Herzberg, that suggests job satisfaction and dissatisfaction arise from two different sets of factors: hygiene factors and motivators.