If a bond is sold at more than par, then:
a. the discount should be amortized using the effective interest rate method.
b. the amount of interest expense will increase each period if the effective interest rate method is used.
c. the carrying value of the bond will increase each reporting period.
d. its stated rate of interest is probably more than the market rate of interest at the time of issuance.
d
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Which of the following would not be true regarding internal service funds?
A. In the government-wide financial statements, internal service funds are most commonly reported in the business-type activities column. B. Internal service funds use the economic resources measurement focus and accrual basis of accounting. C. Examples of internal service funds would include self-insurance funds, motor pool funds, and print shop funds. D. None of the above; all are true.