Which of the following statements is true: Straight line interest method on bonds gives...
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Accounting
Which of the following statements is true:
Straight line interest method on bonds gives a higher interest in the first year than effective interest if bonds are issued at a discount;
When bonds are issued for more than par, straight line interest method gives higher interest expense in the last year than using effective interest rate;
Straight line interest yields a constant interest expense but a changing interest rate.
Multiple Choice
I is true but II and III are false
All of these are false
I and II are true but III is false
All of these are true
I and III are true but II is false
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