If a bond is purchased at a discount,then interest revenue using the effective interest method will be less than the cash interest received.

Name: If a bond is purchased at a discount,then interest revenue using the effective interest method will be less than the cash interest received.
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Question

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Using the effective interest method, interest revenue includes both the cash interest received and the amortization of the discount, making it higher than just the cash interest received.

If a Bond Is Purchased at a Discount,then Interest Revenue