A theoretical difference between the effective interest method and the straight-line amortization method is that
A) the effective interest method is easier to use.
B) the effective interest method can be used if there is a material difference in the computation when compared to the straight-line method.
C) the effective interest method produces a result that is based on a constant rate of interest.
D) the effective interest method produces a result that is based on a constant interest expense.
C
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Lydia told the story of the company’s original founding to ______.
A. remind people of their humble beginnings B. garner appreciation for company’s growth C. give value to all the hard work put in over the years D. all of these
Liabilities represent creditors' claims on the business's assets
Indicate whether the statement is true or false
Which of the following is an incremental cash flow?
A. Market research costs B. Change in working capital C. Sunk costs D. Project site analysis costs E. Externalities
If a company reporting on a calendar year basis, paid $18,000 cash on January 1 for one year of rent in advance (lease beginning January 1), and adjusting entries are made at the end of each month, the balance remaining in Prepaid Rent on December 1 should be $1,500.
Answer the following statement true (T) or false (F)