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Which of the following is correct about the effective interest method of amortization?

A) The effective interest method applied to investments in debt securities is different from that applied to bonds payable.

B) Amortization of a discount decreases from period to period.

C) Amortization of a premium decreases from period to period.

D) The effective interest method produces a constant rate of return on the book value of the investment from period to period

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9437955

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