Which of the Following Is Not an Inherent Risk Typically

question 67

Multiple Choice

Which of the following is not an inherent risk typically associated with recording debt transactions?

• A)Interest expense not being properly recorded.
• B)Failure to accrue interest expense.
• C)Debt not being properly classified.
• D)Debt not being properly authorized.

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Definitions:

Temporary Accounts

Accounts used to track transactions within a specific accounting period, closed out at the end of the period, such as revenues, expenses, and dividends.

Income Tax Summary Report

A document that aggregates all relevant income tax information for an individual or business for a fiscal period.

Tax Line

A specific line on a tax form where particular income, deduction, or credit information is entered, affecting tax calculations.

Account Balances

The amount of money present in an account at any given moment.