Which of the Following Is Correct When Using the Effective-Interest

Multiple Choice

Which of the following is correct when using the effective-interest method of amortizing the discount on bonds payable?

A) Interest expense is computed by adding the portion of amortized discount to the cash interest paid.
B) The amount of interest expense recognized each period increases over time.
C) The amount of discount amortized each period decreases over time.
D) The book value of the bonds payable liability decreases.