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Which One of the General Tests of Details of Balance

question 125

Multiple Choice

Which one of the general tests of details of balance objectives is NOT considered vital in the audit of borrowings?


Definitions:

Bond

An interest-bearing note payable usually in $1,000 denominations issued by a corporation to a large group of lenders.

Annual Interest Rate

The percentage of interest that will be charged or earned on a principal amount over the course of a year.

Face Value

The nominal value or dollar value printed on a security or a financial instrument, such as a bond or a stock certificate.

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.

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