The Audit Objective to Determine That Existing Notes Payable Are

question 39

Multiple Choice

The audit objective to determine that existing notes payable are included in the notes payable schedule (completeness) is accomplished by the following test of balances procedure.

• A)Examine balance sheet for disclosure details.
• B)Recalculate accrued interest.
• C)Review the bank reconciliation for new notes credited directly to the bank account by the bank.
• D)Examine duplicate copies of notes for principal and interest rates.

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Definitions:

Journeymen Employees

Skilled workers who have completed their apprenticeships and are fully qualified in their trade.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at reaching agreements to regulate working conditions, wages, and other employment terms.

Management Negotiators

Representatives of the management or employer side who participate in negotiations with employees or their representatives on matters such as contracts, pay, and conditions.

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions of a particular arrangement or deal.