Multiple Choice
Which of the following statements regarding the effective-interest method of amortization is incorrect?
A) The amount of interest expense is different each period.
B) The amount of discount or premium,on which amortization is calculated,increases each period.
C) The effective-interest method is one of the options allowed by generally accepted accounting principles for all bond issues.
D) The total interest expense over the life of a bond is the same as that reported under the straight-line method of amortization.
Correct Answer:
Verified
Correct Answer:
Verified
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