Reviewing Interest Expense to Identify Payments to Debt-Holders Not Listed

question 68

Multiple Choice

Reviewing interest expense to identify payments to debt-holders not listed on the debt analysis schedule is a procedure that can be used to provide evidence for which audit assertion for loans payable:

• A) occurrence.
• B) completeness.
• C) cut-off.
• D) accuracy.

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Definitions:

Resistance

The opposition to the flow of electric current, measured in Ohms, which affects how much current flows through a circuit.

Voltage Drop

The reduction in electrical potential along the path of a current flowing through an electrical circuit, influenced by the circuit's resistance.

Circuit

A closed loop or pathway that allows the flow of electricity, comprising elements like conductors, resistors, and power sources.

Overheated Wiring

Electrical wiring that has become too hot due to excessive current flow, posing a risk of damage or fire.