In Auditing Long-Term Bonds Payable,an Auditor Most Likely Would

question 61

Multiple Choice

In auditing long-term bonds payable,an auditor most likely would

• A) Perform analytical procedures on the bond premium and discount accounts.
• B) Examine documentation of assets purchased with bond proceeds for liens.
• C) Compare interest expense with the bond payable amount for reasonableness.
• D) Confirm the existence of individual bondholders at year-end.

Grasp the role of information dissemination and competition in ensuring market efficiency.

Calculate total returns on investments, incorporating both capital gains/losses and dividend payments.

Recognize the ethical considerations in financial markets, specifically the impact of insider trading on market efficiency.

Understand the concept of net present value (NPV) and its relation to efficient markets.

---

Definitions:

Operating Time

The total amount of time during which a machine, system, or facility is functioning and available for use.

Oil Change

A routine maintenance operation for vehicles involving the removal of old engine oil and replacing it with new oil to ensure proper engine lubrication and performance.

Alternator

is an electrical generator that converts mechanical energy to electrical energy in the form of alternating current, crucial in automobiles.

Series Layout

A type of manufacturing process layout where operations or work stations are arranged in a sequence that the product must follow for completion.