When bonds are issued at a premium and the effective interest method is used for amortization, at each interest payment date, the interest expense:
A) Increases.
B) Decreases.
C) Remains the same.
D) Is equal to the change in book value.
Answer: B
Accounting MCQ
Accounting
When bonds are issued at a premium and the effective interest method is used for amortization, at each interest payment date, the interest expense:
Subscribe to:
Post Comments (Atom)
If the answers is incorrect or not given, you can answer the above question in the comment box. If the answers is incorrect or not given, you can answer the above question in the comment box.