The Primary Reason for Preparing a Reconciliation Between Interest-Bearing Obligations

question 73

Multiple Choice

The primary reason for preparing a reconciliation between interest-bearing obligations outstanding during the year and interest expense in the financial statements is to:

• A)evaluate internal control over securities.
• B)determine the validity of prepaid interest expense.
• C)ascertain the reasonableness of imputed interest.
• D)detect unrecorded liabilities.