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The Main Focus Taken by the Auditor in Verifying Liability

question 71

Multiple Choice

The main focus taken by the auditor in verifying liability balances is on the discovery of I. understated liabilities.
II) omitted liabilities.


Definitions:

Simple Interest

Simple interest is interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Present Value

The present value of a sum of money or series of cash flows expected in the future, discounted at a certain rate of return.

Amortized Loan

A loan repaid in equal periodic amounts (or “killed off” over time).

Repayment Of Principal

The process of paying back the original amount borrowed in a loan, excluding any interest charges.

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