When there are material differences between the results of using the straight-line method and using the effective interest method of amortization,the straight-line method should be used.

Question

Quizplus · Accepted Answer

The effective interest method of amortization is generally considered to be more accurate in reflecting the actual interest expense over the life of a bond or other debt instrument. Therefore, when there are material differences between the two methods, the effective interest method should be used.

When There Are Material Differences Between the Results of Using