The Two Most Important Balance-Related Audit Objectives for Notes Payable

question 88

Multiple Choice

The two most important balance-related audit objectives for notes payable are

• A) completeness and detail tie-in.
• B) completeness and valuation.
• C) accuracy and valuation.
• D) accuracy and completeness.

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Definitions:

Discounted Payback Period

The time required to recover the cost of an investment considering the time value of money, expressing when the net present value of cash flows equals the initial investment.

Initial Cost

The upfront expense required to acquire an asset, start a project, or launch a product, often excluding ongoing or future costs associated with the asset or project.

Cash Inflows

The total amount of money coming into a business or individual's account, from various sources.

Rate Of Return

Earnings or losses on an investment throughout a certain timeframe, indicated as a percentage of the investment’s inception cost.