Which One of the Following Is True When the Effective-Interest

question 2

Multiple Choice

Which one of the following is true when the effective-interest method of amortizing bond discount is used?

• A) Interest expense as a percentage of the bonds' book value varies from period to period.
• B) Interest expense remains constant for each period.
• C) Interest expense increases each period.
• D) The interest rate decreases each period.

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Definitions:

Efferent Neurons

Neurons that transmit action potentials from the brain or spinal cord to muscles or glands. Compare with afferent neurons.

Sonar

Sonar is a technique that uses sound propagation (usually underwater) to navigate, communicate, or detect other vessels by sending out pulses of sound and listening for echoes.

Echolocation

Determination of the position of objects by detecting echoes of high-pitched sounds emitted by an animal; a type of sensory system used by bats and dolphins.

Thermoreceptors

Sensory cells or nerve endings specialized in detecting variations in temperature, found in the skin and other parts of the body.