100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Summary When the effective-interest method is used to amortize bond premium or discount, the pe $7.99   Add to cart
Quickly navigate to
Preview
  2.  
  3. Ashford University
  4.  
  5. ACC 205

Summary

Summary When the effective-interest method is used to amortize bond premium or discount, the pe
 2 views  0 purchase

When the effectiveWhen the effective-interest method is used to amortize bond premium or discount, the periodic amortization will Select one: a. Increase if the bonds were issued at a premium. b. Increase if the bonds were issued at a discount. c. Increase if the bonds were issued at either a...

[Show more]

Preview 1 out of 2  pages

Document information

  • October 13, 2024
  • 2
  • 2024/2025
  • Summary

Subjects

  • when the effectiveïwhen the effective interest m
  • the periodic amortization will select one a inc
  • the periodic amortization amount changes over tim
  • their carrying amount starts below their face val

Written for

All documents for this subject (71)

Seller

avatar-seller
newage

Reviews received

Content preview

When the effective-interest method is used to amortize bond premium or

discount, the periodic amortization will Select one: a. Increase if the bonds were

issued at a premium. b. Increase if the bonds were issued at a discount. c.

Increase if the bonds were issued at either a discount or a premium. d. Decrease

if the bonds were issued at a premium.




Answer & Explanation


The correct answer is: b. Increase if the bonds were issued at a discount.


Explanation:


When using the effective-interest method to amortize bond premium or

discount, the periodic amortization amount changes over time based on the

carrying amount of the bond and the market interest rate.


1. Bonds Issued at a Discount:


o When bonds are issued at a discount, their carrying amount starts

below their face value.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller newage. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72042 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$7.99
  • (0)
  Add to cart