When using the effective interest method the amount of interest expense each period equals the
a. current market interest rate times the carrying value of the financial instrument at the date of issuance.
b. current market interest rate times the carrying value of the financial instrument at the beginning of each period.
c. historical market interest rate times the carrying value of the financial instrument at the date of issuance.
d. historical market interest rate times the carrying value of the financial instrument at the beginning of each period.
e. fair market interest rate times the carrying value of the financial instrument at the date of issuance.
D
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a. true b. false
In budgeting, variance is:
a. A measure of the degree of dispersion of a distribution about its mean value b. The difference between a realized value and a budgeted, or standard value c. The percentage decrease in volume that can occur without causing the organization to lose money d. The difference between operating profit and total profit e. The difference between total revenues and total costs