The amortization of a bond premium will result in reporting an amount of interest expense for an interest period that
A)is less than the amount of cash to be paid for interest for the period.
B)exceeds the amount of cash to be paid for interest for the period.
C)equals the amount of cash to be paid for interest for the period.
D)has no predictable relationship with the amount of cash to be paid for interest for the period.

Question

Quizplus · Accepted Answer

When a bond is issued at a premium, the amortization of the premium reduces the interest expense, resulting in an interest expense that is less than the cash paid for interest.

The Amortization of a Bond Premium Will Result in Reporting