Bond amortization makes the
A)interest expense smaller than the actual interest payment,while causing the balance in premium on bonds payable to decline each period.
B)interest expense larger than the actual interest payment,while causing the balance in premium on bonds payable to decline each period.
C)interest expense smaller than the actual interest payment,while causing the balance in premium on bonds payable to increase each period.
D)interest expense larger than the actual interest payment,while causing the balance in premium on bonds payable to increase each period.

Question

Quizplus · Accepted Answer

Bond amortization involves recognizing a portion of the bond premium or discount as interest expense each period. In the case of a bond issued at a premium, this will result in a smaller interest expense than the actual interest payment, but it will also cause the balance in the premium on bonds payable account to decline each period.

Bond Amortization Makes the