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If the straight-line method of amortization is used, the amount of unamortized premium on bonds payable will decrease as the bonds approach maturity.

A. True
B. False

User Asra
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1 Answer

4 votes

Answer:

True

Step-by-step explanation:

Amortization is simply the process by which an individual is paying or process of paying back a loan in equal monthly installments.The process of retiring a debt or recovering a capital investment through scheduled, systematic repayment of the principal is not that complicated.

The two ways involved in amortization is the straight line and the effective interest method of amortization.

Straight-line method of amortization is measured by the passage of time, and is the same amount for each year of the assets useful life.

User Ta Sas
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