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Two methods of amortization of a discount or premium are used by businesses. These two methods are the effective interest method and the straight-line method.
Required:
a.Explain how premiums and discounts are amortized using the straight-line and effective interest methods.
b.State which of the two methods is preferred and explain why.
c.Explain why many companies are able to use the method that is not considered GAAP.
Olfactory Receptors
Specialized nerve cells located in the nasal cavity that are responsible for detecting odors and initiating the sense of smell.
Perceptual Hypothesis
A proposal predicting how stimuli are organized and interpreted by the brain to form perceptions.
Distal Stimuli
Objects and events in the external world that provide the basis for sensory input.
Proximal Stimuli
The patterns of stimuli from objects and events that actually reach your senses like the light hitting the retina or sound waves hitting the eardrum.
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