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The use of the effective-interest method to amortize a discount associated with the acquisition of an investment in bonds results in a. the recognition of more interest revenue over the life of the investment than the use of the straight-line method b. the recognition of a constant amount of interest revenue each period c. the recognition of less interest revenue over the life of the investment than the use of the straight-line method d. the recognition of a varying amount of interest revenue each period

The use of the effective-interest method to amortize a discount associated with the acquisition of an investment in bonds results in a. the recognition of more interest revenue over the life of the investment than the use of the straight-line method b. the recognition of a constant amount of interest revenue each period c. the recognition of less interest revenue over the life of the investment than the use of the straight-line method d. the recognition of a varying amount of interest revenue each period

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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18. The use of the effective-interest method to amortize a discount associated with the acquisition of an investment in bonds results in

a. the recognition of more interest revenue over the life of the investment than the use of the straight-line method

b. the recognition of a constant amount of interest revenue each period


c. the recognition of less interest revenue over the life of the investment than the use of the straight-line method


d. the recognition of a varying amount of interest revenue each period

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