The Primary Reason for Preparing a Reconciliation Between Interest-Bearing Obligations

question 73

Multiple Choice

The primary reason for preparing a reconciliation between interest-bearing obligations outstanding during the year and interest expense in the financial statements is to:

• A)evaluate internal control over securities.
• B)determine the validity of prepaid interest expense.
• C)ascertain the reasonableness of imputed interest.
• D)detect unrecorded liabilities.

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Definitions:

Detached

Being emotionally disinterested or indifferent; uninvolved or unconnected.

Communication Behavior

The ways in which individuals convey and interpret messages through verbal and non-verbal means.

Assertive

Behaving confidently and forcefully to express one’s opinions and needs without infringing on the rights of others.

Aggressive

Behaving or acting in a forceful, hostile, or determined way, often to dominate or control others.