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Interest Expense on Bonds Exhibits the Following Attributes Except

Question 167

Multiple Choice

Interest expense on bonds exhibits the following attributes except


A) interest expense is greater than the cash payment for interest when a bond is sold at a premium and effective-interest amortization is used.
B) interest expense is the same dollar amount for every interest payment period,if a bond was issued at a discount and straight-line amortization is used.
C) interest expense is greater than the cash payment for interest when a bond is sold at a discount,regardless of whether straight-line or effective-interest amortization is used.
D) interest expense equals the cash payment for interest if a bond is sold at par.
E) interest expense becomes a larger dollar amount over time when a bond is sold at a discount and effective-interest amortization is used.

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