When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the a

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Nookie1986 [14]

2 years ago

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When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the a

. Face value of the bonds. b. Coupon rate stated in the bond certificate. c. Market rate of interest on the date the bonds were issued. d. Both (a) and (b).

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1 answer:

saw5 [17] · Answer 1 · 2023-09-25T19:59:02+03:00

When using the effective-interest method of amortization, interest expense reported in the income statement is impacted by the Market rate of interest on the date the bonds were issued.

Amortization is an accounting technique used to periodically lower the ebook value of a loan or an intangible asset over a hard and fast term. regarding a loan, amortization focuses on spreading out loan bills through the years. while completed to an asset, amortization is just like depreciation.

Amortization is the accounting exercise of spreading the price of an intangible asset over its beneficial life. Intangible properties are not physical in nature however they are, no matter the truth, property of charge. Examples of intangible belongings which might be expensed via amortization include Patents and logos.

Learn more about amortization here: brainly.com/question/14511778

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