During the Course of an Audit,a Public Accountant Observes That

question 6

Multiple Choice

During the course of an audit,a public accountant observes that the recorded interest expense seems to be excessive in relation to the balance in the long-term debt account.This observation could lead the auditor to suspect that

• A)long-term debt is understated.
• B)discount on bonds payable is overstated.
• C)long-term debt is overstated.
• D)premium on bonds payable is understated.

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Definitions:

Macrosociology

The analysis of large-scale social systems and structures, such as the economy, polity, and population.

Microsociology

The subfield of sociology that focuses on the interactions and social relations among individuals at a small-scale, everyday level.

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action, often contrary to the original intentions.

Latent Functions

are the unintended or unrecognized consequences of social processes or structures.