The straight-line method of amortization allocates an increasing amount to interest expense each interest period.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation expense for an asset over its useful life.

Amortization

The process of spreading the cost of an intangible asset over its useful life or paying off a loan in regular installments over a period.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Gain an understanding of the essential elements of bond amortization, including the distinctions between the straight-line and effective-interest methods.

Verified Answer

Final Answer :

False

Explanation :

The straight-line method of amortization allocates a constant amount to interest expense each interest period.

Learning Objectives

Gain an understanding of the essential elements of bond amortization, including the distinctions between the straight-line and effective-interest methods.