What Procedure Can an Auditor Use to Determine Whether Notes

question 40

Multiple Choice

What procedure can an auditor use to determine whether notes payable on the notes payable schedule are properly classified?

• A)Review the notes to determine whether any are with related parties.
• B)Confirm notes payable.
• C)Examine corporate minutes for loan approval.
• D)Examine notes,minutes,and bank confirmations for restrictions.

---

Definitions:

Marginal Utility

The change in satisfaction or utility that an individual gains from consuming an additional unit of a good or service.

Rock Concerts

Rock concerts are live music performances by rock bands or solo artists, characterized by energetic performances and, often, loud music.

Colas

Cost-of-living adjustments (COLAs) are automatic adjustments made to salaries, wages, or benefits to counteract the effects of inflation.

Marginal Utility

The increase in happiness or usefulness experienced by a consumer when one more unit of a good or service is consumed.