In an Audit Test of Recorded Interest Expense and Accrued

question 82

Multiple Choice

In an audit test of recorded interest expense and accrued interest, the auditor was able to detect that the recorded interest expense was higher than the calculations showed. This may indicate:

• A)a failure to accrue interest occurred.
• B)interest payments are in default.
• C)interest payments were charged to another account.
• D)interest was paid on an unknown debt or unrecorded liability.

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Definitions:

Cashews

A type of nut that is crescent-shaped and commonly consumed as a snack or used in various recipes.

Determinant

A scalar value that can be computed from the elements of a square matrix and encodes certain properties of the matrix.

Minors

The determinants of the smaller square matrices obtained by removing one row and one column from a square matrix, used in calculating the determinant of the matrix.

Matrix

A rectangular array of numbers, symbols, or expressions, arranged in rows and columns, used in mathematics and computer science.