hen the effective cost of d
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter11: Notes, Bonds, And Leases
Section: Chapter Questions
Problem 2Q
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Question
When the effective cost of debt is greater its the nominal cost, *
a. The entity records a discount on the bond payable.
b. the initial net measurement of the bond is more than the face value.
c. The net proceeds is more than the face value.
d. The interest expense is less than the interest payments.
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