During the Course of an Audit,a Public Accountant Observes That

question 6

Multiple Choice

During the course of an audit,a public accountant observes that the recorded interest expense seems to be excessive in relation to the balance in the long-term debt account.This observation could lead the auditor to suspect that

• A)long-term debt is understated.
• B)discount on bonds payable is overstated.
• C)long-term debt is overstated.
• D)premium on bonds payable is understated.

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Definitions:

Cognitive-behavioral Model

A systematic technique in counseling intended to address negative emotions, behaviors, and beliefs through a goal-specific, orderly approach.

Abnormal Behavior

Actions, thoughts, or emotions that deviate significantly from cultural norms or expectations, often leading to distress or impairment in daily functioning.

Group Therapy

A therapy format in which a group of people with similar problems meet together with a therapist to work on those problems.

Family Therapy

A type of psychotherapy that involves all members of a family unit and aims to address its problems and improve communication and relationships within the family.