Which of the Following Internal Controls Over Notes Payable Address

question 28

Multiple Choice

Which of the following internal controls over notes payable address risks associated with the accuracy,allocation,and completeness audit assertions?

• A)Renewals or new notes should be approved by the board of directors (as evidenced in the minutes)or by senior management.
• B)Authorized employees should perform independent recalculations of interest and reconciliation of the notes payable balance to the general ledger.
• C)Subsidiary records should be maintained for each note and there should be control over blank and paid notes.
• D)Paid notes should be cancelled and retained under the custody of an authorized official.

Identify and explain the legal doctrine of promissory estoppel and its application.

Differentiate between liquidated and unliquidated debts and their implications on accord and satisfaction.

Recognize exceptions to the rule requiring consideration, including promissory estoppel and modifications under the UCC.

Distinguish between bilateral and unilateral contracts and their respective considerations.

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Definitions:

Application Title

The name given to a software application, displayed in the title bar when the program is run and often used to identify the software.

Procedure

A set of instructions or steps designed to perform a specific task or solve a problem, often used in programming and operational contexts.

Event

An occurrence within a software environment that triggers a specific response or process, often initiated by user actions or system changes.

Compact Database

The process of reducing the size of a database by eliminating unused space, which can improve performance and decrease storage requirements.