For bonds issued at a premium,the effective interest method yields increasing amounts of bond interest expense and decreasing amount of premium amortization over the bond's life.

Question

Quizplus · Accepted Answer

The effective interest method yields decreasing amounts of bond interest expense over the life of the bond, as the carrying amount of the bond decreases due to the amortization of the premium.

For Bonds Issued at a Premium,the Effective Interest Method Yields