The spreading of bond discount over the life of the bonds as interest expense is called
A)discount amortization.
B)effective-interest amortization.
C)compound interest amortization.
D)premium amortization.
E)LIBOR.

Question

Quizplus · Accepted Answer

Discount amortization is the process of gradually writing off the discount on bonds payable over the life of the bonds as interest expense.

The Spreading of Bond Discount Over the Life of the Bonds