The Result of Using the Effective Interest Method of Amortization

question 113

Multiple Choice

The result of using the effective interest method of amortization of discount on bonds is that the

• A)interest expense for each amortization period is constant.
• B)effective interest rate for each amortization period is constant.
• C)amount of interest expense decreases each period.
• D)cash interest payment is greater than the interest expense.

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Definitions:

Labour Force

the total number of people who are available to work, including both the employed and the unemployed who are seeking employment.

Productivity

The effectiveness of productive effort, measured in terms of the rate of output per unit of input.

Appropriate Technology

Technology that is specifically designed to be environmentally sustainable, economically viable, and culturally appropriate for its intended users.

Continuous-process Production

A method of production where raw materials and products are constantly moved through a series of processes, allowing for the production of goods at a constant rate.