Accountıng Iı Deneme Sınavı Sorusu #1063855

What is the effective interest method?


It is method to classify bonds.

It is a method to compute bond interest expense.

It is a method to calculate the selling price of bonds.

It is a method to record journal entries.

It is a the method used for amortization of a discount or premium.


Yanıt Açıklaması:

Adjustment process to the cost as bond interest expense over the life of bonds called amortization. The method used for amortization of a discount or premium is called effective interest method. The correct answer is E.

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