Q. When the city amortizes the premium on bonds issued it will: Decrease both in
ID: 2416480 • Letter: Q
Question
Q. When the city amortizes the premium on bonds issued it will:
Decrease both interest expenditures and interest expense
Increase both interest expenditures and interest expense
Decrease interest expenditures
Increase interest expenditures
Decrease interest expense
Increase interest expense
a.Decrease both interest expenditures and interest expense
b.Increase both interest expenditures and interest expense
c.Decrease interest expenditures
d.Increase interest expenditures
e.Decrease interest expense
f.Increase interest expense
Explanation / Answer
Ans : c. Decrease the interest expenditure. At the time of issue of bond premium on bond was expenditure and that expenditure was amortize then it is a decrease in interest expenditure.
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