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Which of the following is correct about the effective-interest method of amortization?

Sagot :

Answer: A

a.

The effective interest method applied to debt investments is different from that applied to bonds payable.

b.

The amortization of a discount decreases from period to period.

c.

The effective interest method applies the effective interest rate to the beginning carrying amount for each interest period.

d.

The amortization of a premium decreases from period to period.

Explanation: