You Are Auditing the Long-Term Notes Payable Account for a Client

question 46

Multiple Choice

You are auditing the long-term notes payable account for a client. Which of the following audit procedures would you most likely employ?

• A) Compare interest expense recorded by the client with the notes payable account for reasonableness.
• B) Confirm bonds payable with individual bond holders.
• C) Perform analytical procedures on the bond discount or premium account.
• D) Examine bond documents for the presence of hybrid securities.

---

Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to learned responses.

Meat Powder

In the context of psychology, meat powder is famously associated with Ivan Pavlov's classical conditioning experiments as a stimulus for the salivary response in dogs.

Fixed-interval Reinforcement

A schedule in operant conditioning where rewards or reinforcement are given at fixed intervals of time, provided that the correct response is made.

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning in animals, especially through rewards and punishments.