The Use of the Effective Interest Method to Amortize a Discount

The use of the effective interest method to amortize a discount associated with the acquisition of an investment in bonds results in

A) the recognition of more interest revenue over the life of the investment than would result from the use of the straight-line method
B) the recognition of a constant amount of interest revenue each period
C) the recognition of less interest revenue over the life of the investment than would result from the use of the straight-line method
D) the recognition of a varying amount of interest revenue each period

Correct Answer:

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